Nvidia has reported a significant surge in revenue, jumping nearly 80% year-over-year, driven by strong demand for its AI-focused microchips. The company’s earnings for the fourth quarter of its fiscal year 2025 exceeded Wall Street estimates, with total revenue reaching $39.3 billion. This marked a 12% increase from the previous quarter and far surpassed analyst projections of $37.72 billion. CEO Jensen Huang attributed the growth to the rapid advancement of AI technologies, particularly in high-performance computing and machine learning applications.
The data center segment played a crucial role in Nvidia’s revenue increase, accounting for over 90% of total earnings. Revenue from this division rose 93% year-over-year to $35.6 billion, reflecting the growing importance of AI in various industries. Nvidia’s latest Blackwell chip, designed for AI and machine learning, has seen high demand, further solidifying the company’s dominance in the AI hardware market. Huang emphasized that AI is developing at an unprecedented pace, setting the stage for transformative changes across multiple sectors.
Nvidia’s stock price responded positively to the earnings report, closing up 3.67% at $131.28 on February 26. However, after-hours trading saw a slight decline of 1.49% to $129.32. The company’s stock remains below its all-time high of over $147, which was reached in November. Market volatility in the AI sector has been evident, especially after Nvidia experienced a historic single-day value drop in January, shedding nearly $600 billion in market capitalization following concerns over competition from Chinese AI firms.
Amidst Nvidia’s AI-driven success, other tech giants are ramping up their AI investments. Microsoft has expanded its AI operations, while Bitcoin mining companies have begun leveraging their infrastructure for AI computing. Analysts suggest that reduced AI spending could help stabilize inflation, potentially influencing U.S. Federal Reserve policies. As AI adoption accelerates, Nvidia remains at the forefront of the sector, positioning itself as a key player in the ongoing technological revolution.