Nvidia has exceeded Wall Street expectations, reporting an impressive 78% year-on-year revenue surge, driven by robust demand for its AI-focused microchips. For the fiscal year 2025, ending January 26, Nvidia announced a revenue of $39.3 billion for the fourth quarter, a 12% increase from the previous quarter and well above analysts’ estimates of $37.72 billion. The company’s earnings per share reached 89 cents, surpassing the expected 84 cents.
CEO Jensen Huang credited the earnings boost to the growing demand for Nvidia’s Blackwell microchips, designed for AI, machine learning, and high-performance computing. Huang emphasized the rapid evolution of AI, describing it as a driving force behind industry transformation.
Also Read: Nvidia Surpasses $2 Trillion In Market Valuation
Nvidia’s data center revenue, now representing over 90% of total revenue, rose 93% to $35.6 billion compared to the previous year, showcasing the company’s dominance in AI infrastructure. Despite these strong earnings, Nvidia’s stock saw only a modest 3.67% increase, closing at $131.28 on February 26, still below its all-time high of over $147 in November.
This positive earnings report follows a significant drop in Nvidia’s valuation in late January, when its shares fell nearly 17% due to concerns over competition from Chinese AI firm DeepSeek. The drop wiped out nearly $600 billion from Nvidia’s market value.
Despite these challenges, Nvidia continues to push forward in the AI sector, with Huang reiterating the company’s commitment to staying ahead in agentic AI development. Other tech giants like Microsoft are also increasing their AI investments, while Bitcoin miners are exploring diversification into AI and high-performance computing.
