New Delhi, Aug. 27 -- NVIDIA's second-quarter (Q2) results exceeded expectations, and its revenue guidance for the next financial year beat estimates. But experts say the chipmaker now faces a tougher challenge; rising costs and pressure on profit margins could test how long its AI-fuelled growth can continue.

The chipmaker's revenue for the July quarter more than doubled to $96.2 billion, while adjusted profit came in at $2.22 per share. The momentum is expected to remain strong over the next year, with the company targeting a 70% ​increase in revenue in 2028.

Following the results, Nvidia shares rose as much as 7.6% to $225.50 after trading got underway in New York on Thursday, adding about $362 billion in market value. The stoc...