Nvidia and Alphabet report divergent AI-driven growth models, with NVDA’s data center revenue up 92% and GOOG’s cloud segment accelerating.
Nvidia reported an 85% year-over-year revenue increase to $81.615 billion, driven by a 92% surge in its Data Center segment to $75.25 billion. Networking revenue alone grew 199%, reflecting demand for InfiniBand, NVLink, and Spectrum-X technologies. The company guided Q2 revenue to $91 billion, excluding China Data Center compute sales.
Alphabet posted 24% revenue growth to $119.80 billion, with Google Cloud revenue reaching $24.77 billion, up 82%. The company suspended buybacks, doubled long-term debt to $98 billion, and guided $180-190 billion in capex, pushing free cash flow to negative $5.86 billion. Nearly 90% of the Fortune 100 now use Gemini Enterprise, with Gemini models processing 22 billion API tokens per minute.
The results highlight contrasting AI business models: Nvidia’s high-margin hardware dominance versus Alphabet’s ad-funded cloud expansion. NVDA trades at 41x P/E, while GOOG’s 15x P/E reflects its cash flow cushion amid heavy capex.