Nvidia, a chipmaker based in the United States, announced a 101% increase in quarterly revenue year over year, as companies around the world race to develop next-generation artificial intelligence-powered devices, driving up demand for AI processors. Nvidia's revenue for the three months ending July 30 was $13.51 billion, more than tripling last year's total and setting a new record for the business.

 

"A new computing era has begun," Jensen Huang, founder and CEO of Nvidia, said in an earnings release. "Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI."

 

Nvidia shares were up roughly 8.5% in after-hours trade Wednesday at 5:30 p.m. EDT.

 

"Our demand is tremendous. We are significantly expanding our production capacity," Huang said at an earnings briefing after the release. "Supply will substantially increase for the rest of this year and next year," he said.

 

Nvidia's most advanced chips are manufactured by Taiwan Semiconductor Manufacturing Co. In after-hours trade, TSMC's stock rose more than 2%. Even though Washington has imposed export restrictions on China, the country accounts for a large portion of AI chip demand. According to Nvidia, Chinese buyers contributed for 20% to 25% of total sales from data center goods, making them the company's largest revenue generator. Data center goods generated $10.32 billion in revenue, a 171% increase over the previous year.

 

Chinese internet firms are scrambling to acquire high-performance Nvidia processors, placing $5 billion in orders in a recent shopping frenzy spurred by fears that the US would impose new export limits.