Nvidia, a leading chip maker, has exceeded Wall Street’s expectations with its latest earnings report, showing nearly an 80% increase in revenue during the fourth (4Q) of 2024 compared to last year, mainly due to sales of its AI-focused microchips.
In its earnings report, released on 26 February, for the 4Q of its 2025 fiscal year, which ended on 26 January, Nvidia reported revenues of $39.3 billion. This is a 12% increase from the previous quarter and a 78% rise from the same quarter last year.
Zacks Investment Research noted that Wall Street had estimated revenue at just $37.72 billion, while Nvidia’s earnings per share of 89 cents surpassed expectations of 84 cents.
Nvidia’s founder and CEO, Jensen Huang, stated that the increase in earnings was driven by strong demand for their Blackwell microchip, which is designed for artificial intelligence (AI), machine learning, and high-performance computing. He stated: “AI is advancing quickly as new technologies prepare to transform major industries”.
Meanwhile, Nividia’s data center revenue made up over 90% of its total, reaching $35.6 billion, up 93% from the previous year.
It is worth noting that Nvidia’s stock (NVDA) closed up 3.67% at $131.28 on Wednesday, few hours before releasing the earnings report. However, it is still below its record high of over $147 reached in November.
In January, Nvidia experienced the largest single-day loss in the US stock market history, with shares dropping nearly 17% and wiping out almost $600 billion in value, driven by fears after a Chinese AI company, DeepSeek, released a model that could compete with OpenAI’s ChatGPT.
Huang has stated that Nvidia aims to lead in the AI race as competition intensifies. Other US companies are also increasing their investments in AI like Microsoft that revealed its plans to open two AI centers in UAE.
Within his analysis on SAXO Bank website, Jacob Falkencrone, the Global Head of Investment Strategy, stressed that AI remains a long-term growth driver, but highlighted that Nvidia’s stock may no longer deliver the high gains of the past.
“Investor expectations were sky-high, and while earnings were strong, they weren’t a game-changer—markets were looking for a bigger catalyst to drive stocks meaningfully higher.
The AI trade is maturing, and future stock gains will depend on execution and new catalysts—watch for hyperscaler spending trends, product rollouts like Blackwell, and broader market sentiment”, Falkencrone explained.
Nvidia’s impressive earnings report highlights the growing demand for AI technology, significantly boosting its revenue and solidifying its position in the market. Despite recent fluctuations in its stock value, the company’s focus on advanced AI solutions and strategic partnerships positions it well for future growth. As other tech firms and industries, including Bitcoin mining, also pivot towards AI, the landscape of digital innovation continues to evolve rapidly, potentially influencing broader economic trends and monetary policies.
