Nvidia's SHOCKING $39 Billion Quarter: AI Boom Sends Stock Soaring!

2025-02-27 05:16:00.273

Nvidia reported a massive surge in fourth-quarter profit and sales, reaching $39.3 billion in revenue—a 12% increase from the previous quarter and a staggering 78% year-over-year jump. This success is largely attributed to the skyrocketing demand for their Blackwell chips, crucial for powering artificial intelligence systems. Adjusted earnings reached 89 cents per share, exceeding analysts' predictions of 85 cents per share and $38.1 billion in revenue. Nvidia's CEO, Jensen Huang, attributed the success to the "amazing" demand for Blackwell chips, highlighting the increasing importance of compute power in AI development. Data center sales were a key driver, reaching $35.6 billion—a 93% increase year-over-year. The company's involvement in the Stargate project, a joint venture investing up to $500 billion in AI infrastructure, further contributes to this growth. Nvidia's CFO, Colette Kress, revealed that fourth-quarter Blackwell sales exceeded expectations, reaching $11 billion—the fastest product ramp in the company's history. Large cloud service providers accounted for approximately 50% of data center revenue. Nvidia's market value has soared to over $3 trillion, making it the second-largest company on Wall Street. Despite concerns about inflation and potential economic challenges, the company forecasts continued growth, projecting $43 billion in revenue for the first quarter of fiscal 2026. While acknowledging uncertainty regarding potential tariffs, Nvidia remains optimistic about the future of AI, particularly highlighting the emergence of "agentic AI," "physical AI," and "sovereign AI." The company also addressed the recent impact of DeepSeek's large language model, commending its innovation while emphasizing the model's compliance with export controls.