Nvidia reported higher-than-expected revenue and profitability in the fourth quarter and reasonable expectations for the current quarter. The reported revenue for the fourth quarter ending January 26, 2025, was $39.3 billion, up 12% from the previous quarter and 78% from a year earlier.
The chipmaker’s revenue growth over the last year was primarily driven by strong demand for its GPUs in the artificial intelligence sector. Blackwell AI supercomputer manufacturing has grown, with billions of dollars in sales in the first quarter, laying the path for the next wave of AI to transform key sectors.
“The new Blackwell AI chips established a sales record, accounting for $11 billion in their first quarter—31% of data center revenue—making them NVIDIA’s fastest-growing product ever. According to Dilin Wu, a Pepperstone Research Strategist, CEO Jensen Huang stated on the earnings call that demand for Blackwell is ‘exceptionally robust,’ particularly in AI inference applications. NVIDIA’s projection for the first quarter of fiscal 2026 is $43.0 billion in revenue, with GAAP and non-GAAP gross margins of 70.6% and 71.0%, respectively.
Jensen Huang, CEO of Nvidia, emphasized artificial intelligence’s growing market position and the spike in demand for its solutions following AI model training. “Huang identified three critical areas on which Nvidia would focus its development: agency AI, physical AI, and sovereign AI.
According to Antonio Di Giacomo, Senior Market Analyst at XS.com, these developments are the next step in automation and process simulation, with applications in robotics, industrial simulation, and digital service customization. Nvidia’s earnings were announced after the market closed, and after-hours trading was not very promising. However, in Thursday’s pre-market session, Nvidia stock was up 1%.
“What is driving the share reaction is that this is yet another typical Nvidia report in which they outperform and exceed expectations. Their track record of doing so consistently virtually works against them since the market is unimpressed unless it is a landslide beat and increase. Ken Mahoney, CEO of Mahoney Asset Management, believes that simply beating and increasing is insufficient for this stock to begin to rise meaningfully. Nvidia GTC is the leading developer conference at the heart of AI. It’s where developers, researchers, innovators, IT decision-makers, business executives, and students can witness real-world examples of how AI and accelerated computing address the world’s most pressing concerns and allow companies to thrive.
