Nvidia Surpasses Expectations with 265% Revenue Surge Driven by Booming AI Business

Nvidia has once again demonstrated its dominance in the technology sector with a remarkable fourth fiscal quarter earnings report that exceeded Wall Street’s forecasts for both earnings and sales.

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The company’s revenue surged by a staggering 265%, buoyed by robust demand for its graphics processors used in large artificial intelligence models.

The stellar performance sent Nvidia shares soaring approximately 10% in extended trading, underscoring investor confidence in the company’s growth trajectory.

Here’s a breakdown of Nvidia’s fourth-quarter earnings compared to analyst expectations:

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  • Earnings per share: $5.16 adjusted vs. $4.64 expected
  • Revenue: $22.10 billion vs. $20.62 billion expected

Moreover, Nvidia provided a bullish outlook for the current quarter, anticipating sales of $24.0 billion, surpassing analysts’ expectations of $22.17 billion in sales.

Nvidia’s remarkable success can be attributed to its pivotal role in powering the development of large artificial intelligence models, which are heavily reliant on the company’s high-performance graphics processors for servers.

During a call with analysts, Nvidia CEO Jensen Huang addressed concerns about sustaining this growth, emphasizing that the company is poised for continued expansion in 2025 and beyond. He highlighted the sustained demand for Nvidia’s GPUs driven by generative AI and a broader industry shift towards accelerators over central processors.

The company reported a staggering $12.29 billion in net income during the quarter, marking a remarkable 769% increase from the previous year. Nvidia’s total revenue surged by 265%, propelled by strong sales of AI chips for servers, particularly the company’s “Hopper” chips such as the H100.

Nvidia’s Data Center business, which now accounts for the majority of its revenue, witnessed a remarkable 409% increase to $18.40 billion. Notably, over half of the company’s data center sales were attributed to large cloud providers.

However, Nvidia acknowledged that its data center revenue was impacted by recent U.S. restrictions on exporting advanced AI semiconductors to China. Despite this setback, the company remains optimistic about its prospects in the Chinese market.

While Nvidia continues to enhance the supply of its AI GPUs, it anticipates ongoing supply constraints, particularly for its next-generation chip, the B100, expected to ship later this year.

In contrast, Nvidia’s gaming business, which includes graphics cards for laptops and PCs, saw a comparatively modest 56% year-over-year increase to $2.87 billion. Nevertheless, the company’s smaller businesses, including its automotive and OEM segments, exhibited varying growth trends.

Overall, Nvidia’s exceptional performance underscores its leading position in the AI and technology landscape, positioning the company for continued success in the years ahead.