Nvidia (NASDAQ: NVDA) has announced its fourth-quarter results for the fiscal year 2025, showcasing significant growth driven by the escalating demand for artificial intelligence (AI) chips.
The company reported a quarterly revenue of $39.3 billion, marking a 78% increase from the same period last year. Net income for the quarter stood at $22.06 billion, reflecting an 80% year-over-year rise. This surge is largely attributed to the widespread adoption of AI technologies across various industries.
Despite emerging competition from companies like China’s DeepSeek, which has developed AI models requiring fewer GPUs, Nvidia maintains a strong market position. The company’s CEO, Jensen Huang, emphasized the “amazing” demand for Nvidia’s Blackwell GPUs, which have significantly contributed to the company’s robust performance.
Source: Nvidia’s Official Financial Release
Nvidia’s Data Center Revenue Skyrockets 93% on AI Expansion
Nvidia’s Data Center division led the company’s growth, generating $35.6 billion in revenue, marking a 93% year-over-year increase. The rise reflects the rapid adoption of AI-powered computing infrastructure as businesses expand their AI capabilities.
The introduction of the Blackwell GPU architecture has been pivotal, contributing approximately $11 billion in revenue during its first quarter of availability. Huang reassured investors that Nvidia has successfully ramped up production to meet demand.
Source: Reuters
Nvidia Stock Surges 3.77% Post-Earnings, Rebounding from Early Dip
Following its earnings announcement, Nvidia shares initially dipped 0.5% in after-hours trading before rebounding 2.5%, reflecting investor confidence in the company’s long-term AI-driven growth.
The stock surged to an intraday high of $136.38 before stabilizing at $131.28, closing 3.77% higher from the previous session. Analysts remain bullish, citing sustained AI demand and strong data centre sales as key catalysts for future growth.
However, broader market uncertainties, supply chain disruptions, and potential tariff impacts on production costs remain risks for investors.
Source: The Times
Nvidia Raises Q1 Forecast to $43B but Faces Supply Chain Risks
Looking ahead, Nvidia has provided an optimistic Q1 revenue forecast of $43 billion, exceeding analyst estimates of $42.1 billion. However, gross margins are expected to dip to 73%, down from 76.7% in the previous year, due to increased production costs associated with Blackwell GPUs.
Despite its dominance in the AI chip market, Nvidia faces growing competition from emerging AI chipmakers and potential supply chain disruptions. The company must maintain innovation and operational efficiency to sustain long-term growth.
Source: Reuters
