Nvidia’s strong results raise questions about AI spending

Nvidia reported roughly $60 billion in net profit and $96.22 billion in revenue, with profit doubling from a year earlier. The chipmaker, already valued at more than $5 trillion, said it expected revenue to rise another 70% next fiscal year.

The company’s largest customers are projected to spend $1.5 trillion on data centers this year and next, even as some struggle to generate profits from artificial intelligence. Nvidia has also begun co-financing and investing in major customers, raising concerns about the sector’s dependence on one company and the sustainability of its spending boom.

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