Level 1 - Absolute Beginner
Nvidia is a company that makes computer chips. It shared new money news this week.
Nvidia made 96.2 billion dollars last quarter. That is much more money than last year.
The company thinks it will make even more money soon. It expects sales to grow by 70 percent.
Nvidia's chips help computers do artificial intelligence, or AI. Many companies want to buy these chips.
- company
- a business that makes or sells products or services
- chip
- a small electronic part inside a computer that helps it work
- quarter
- a three month period of the year, used to report business results
- revenue
- the total money a company earns from selling things
- grow
- to become bigger or increase in amount
- percent
- a part out of every hundred
- artificial intelligence
- computer systems that can perform tasks that normally need human thinking
- demand
- how much people want to buy a product
Level 2 - Elementary
Nvidia, the world's leading maker of chips used for artificial intelligence, reported quarterly revenue of 96.2 billion dollars, an increase of 106 percent compared with the same period last year.
The company's data center business, which sells chips to big cloud computing companies, brought in 89 billion dollars, higher than analysts had expected.
Nvidia's chief financial officer, Colette Kress, told investors the company expects revenue to grow by about 70 percent in fiscal year 2028, a forecast well above what most analysts had predicted.
Despite the strong results, Nvidia's stock price moved up and down after the announcement, as some investors worried that big technology companies might not keep spending so much money on AI equipment forever.
- leading
- the most successful or important in a particular area
- increase
- a rise in amount, number, or level
- data center
- a building full of computers used to store and process information
- cloud computing
- using remote computers over the internet to store data and run programs
- chief financial officer
- the top executive responsible for managing a company's money
- forecast
- a prediction about what will happen in the future
- analyst
- a person who studies information to give expert opinions, often about businesses or markets
- equipment
- the tools or machines needed for a particular purpose
Level 3 - Intermediate
Nvidia, the dominant supplier of chips powering the artificial intelligence boom, reported second quarter revenue of 96.2 billion dollars, a 106 percent increase over the same period last year and well above what Wall Street analysts had projected.
The company's data center segment, which supplies processors to major cloud providers building out AI infrastructure, generated 89 billion dollars, surpassing expectations of roughly 86.3 billion dollars and marking a 117 percent annual increase.
Chief financial officer Colette Kress told analysts that Nvidia expects revenue to grow approximately 70 percent in fiscal 2028, a supply constrained estimate that significantly exceeded the roughly 45 percent growth rate that analysts had projected for that year.
Despite the blockbuster figures, Nvidia shares fluctuated in after hours trading, reflecting lingering investor unease over whether hyperscale technology companies can sustain the enormous capital expenditure required to keep expanding AI data centers.
- dominant
- more powerful or important than others in the same category
- segment
- a distinct part of a business or market
- processor
- a chip that performs the main calculations in a computer
- surpass
- to do or be better than something expected or previous
- supply constrained
- limited by how much of something can be produced or delivered, rather than by demand
- blockbuster
- extremely successful or impressive
- hyperscale
- describing extremely large scale computing operations run by major technology companies
- capital expenditure
- money a company spends on long term assets like buildings or equipment
Level 4 - Advanced
Nvidia, the preeminent supplier of chips underpinning the artificial intelligence boom, reported second quarter revenue of 96.2 billion dollars, a 106 percent increase year over year that comfortably exceeded Wall Street's consensus estimates.
The company's data center segment, which supplies processors to hyperscale cloud providers building out AI infrastructure, generated 89 billion dollars, eclipsing expectations of roughly 86.3 billion dollars and representing a 117 percent annual increase.
Chief financial officer Colette Kress told analysts that Nvidia anticipates revenue growth of approximately 70 percent in fiscal 2028, a supply constrained projection that dwarfed the roughly 45 percent growth rate Wall Street had modeled for that year.
Notwithstanding the blockbuster figures, Nvidia shares fluctuated in after hours trading, underscoring persistent investor apprehension over whether hyperscale technology firms can sustain the extraordinary capital expenditure required to keep expanding AI data center capacity.
- preeminent
- surpassing all others; the most outstanding in a field
- underpin
- to support or form the basis of something
- consensus estimate
- the average prediction agreed upon by a group of financial analysts
- eclipse
- to surpass or exceed by a wide margin
- anticipate
- to expect or predict something will happen
- dwarf
- to make something seem small by comparison
- notwithstanding
- in spite of; despite
- apprehension
- anxiety or fear about something that might happen