Nvidia on Wednesday forecast third-quarter revenue of $108 billion, well above analysts' estimates, as the chipmaker reported second-quarter profit and revenue that doubled from a year earlier.

The company said it sees a trillion-dollar market opportunity for its AI chips through 2027. Nvidia's operating expenses and future spending plans have also increased. The demand underpinning that outlook stems from the wave of investment in AI data centers that followed the arrival of generative AI tools such as ChatGPT in late 2022, when cloud providers and large enterprises began racing to add computing capacity for training and running AI models.

The outlook comes as competition in the AI chip market grows. Advanced Micro Devices and Intel sell rival AI accelerators, and major cloud providers including Google, Amazon, and Microsoft have developed their own custom silicon for AI workloads. Nvidia nonetheless has secured major partnerships and customer commitments, and its CUDA software platform, the programming environment most AI developers build on, has not been fully replicated by competitors.

Because Nvidia's chips sit at the center of the data centers used to train and run large AI models, its quarterly results are widely watched as a gauge of AI infrastructure spending across the technology industry.

Nvidia, headquartered in Santa Clara, California, was founded in 1993 and is led by co-founder and chief executive Jensen Huang. The company designs graphics processing units and AI accelerators, and its shares trade on the Nasdaq under the ticker NVDA. Its data center chips are widely used by cloud providers and other large technology companies to train and run artificial intelligence models, and the data center business accounts for the largest share of the company's revenue.

Source: Economic Times Markets, published August 26, 2026.