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Nvidia, Powered by A.I. Boom, Reports Soaring Revenue and Profits

Nvidia, which makes microchips that power most artificial intelligence applications, began an extraordinary run a year ago.

Fueled by an explosion of interest in A.I., the Silicon Valley company said last May that it expected its chip sales to go through the roof. They did — and the fervor didn’t stop, with Nvidia raising its revenue projections every few months. Its stock soared, driving the company to a more than $2 trillion market capitalization that makes it more valuable than Alphabet, the parent of Google.

On Wednesday, Nvidia again reported soaring revenue and profits that underscored how it remains a dominant winner of the A.I. boom, even as it grapples with outsize expectations and rising competition.

Revenue was $26 billion for the three months that ended in April, surpassing its $24 billion estimate in February and tripling sales from a year earlier for the third consecutive quarter. Net income surged sevenfold to $5.98 billion.

Nvidia also projected revenue of $28 billion for the current quarter, which ends in July, more than double the amount from a year ago and higher than Wall Street estimates.

“We are poised for our next wave of growth,” Jensen Huang, Nvidia’s chief executive, said in a statement.

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