Nvidia (NVDA) reported blowout second quarter results Wednesday, crushing Wall Street’s expectations on both the top and bottom line. But perhaps the most important news came during the company’s earnings call when CFO Colette Kress attempted to assuage investors’ concerns about a supply crunch and the impact of further US sanctions against China.

Nvidia, Kress told analysts, is well positioned on both fronts.

“Our supply partners have been exceptional in ramping capacity to support our needs,” Kress said. “We have also developed and qualified additional capacities and suppliers for key steps in the manufacturing process.”

According to Kress, Nvidia expects supplies to increase each quarter through next year, which should help the company meet the massive ramp-up in demand it’s experiencing as the AI craze continues to pick up steam.

In the latest quarter, Q2, Nvidia’s revenue jumped some 101% year over year to $13.5 billion, while earnings per share rose 429% to $2.70. And demand isn’t slowing, as the company said it expects to bring in $16 billion in revenue in the current quarter, plus or minus 2%. That’s well ahead of analysts’ forecast of $12.5 billion.

Kress also hit on whether additional US sanctions on selling high-end chips to China would take a bite out of Nvidia’s revenue moving forward: She said the company shouldn’t face any problems.

“We believe the current regulation is achieving the intended results given the strength of demand for our products worldwide,” Kress said. “We do not anticipate that additional export restrictions on our data center GPUs, if adopted, would have an immediate material impact or financial results.”

Proving the big names are still buying

In addition to tamping down on fears that Nvidia could face an inventory shortfall — or that it will be hurt by increasing tensions between the US and China — Kress pointed to a number of big-name companies that continue to buy up Nvidia’s products.

“Data center … revenue nearly tripled year on year, driven primarily by accelerating demand from cloud service providers and large consumer internet companies,” she said.

“Major companies including AWS (AMZN), Google Cloud (GOOG), Meta (META), Microsoft Azure (MSFT), and Oracle Cloud (ORCL), as well as a growing number of GPU cloud providers, are deploying, in volume, HDX systems based on our Hopper and Ampere architecture tensor core GPUs.”

As for how long Nvidia can keep up this kind of growth, CEO Jensen Huang pointed to the enormity of the global data center market — and the need for companies to lean further into accelerated computing and AI.

“There's about $1 trillion worth of data centers, call it a quarter of a trillion dollars of capital spent each year. You're seeing that the data centers around the world are taking that capital spend and focusing it on the two most important trends of computing today: accelerated computing and generative AI,” Huang said.

“This is not a near-term thing. This is a long-term industry transition. And we're seeing these two platform shifts happening at the same time,” he added.

Nvidia, though, needs to ensure it can hold on to its lead in the chip space throughout that transition. But with rivals AMD, Intel, and others looking to topple the AI giant, that could be a difficult task.

Daniel Howley is the tech editor at Yahoo Finance. He's been covering the tech industry since 2011. You can follow him on Twitter @DanielHowley.

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