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

2025-02-27 08:04:09.84

Nvidia announced a phenomenal fourth quarter, with revenue reaching $39.3 billion, a 12% increase from the previous quarter and a staggering 78% year-over-year growth. This success is largely attributed to the soaring demand for their Blackwell chips, crucial for powering artificial intelligence systems. Adjusted earnings per share reached 89 cents, surpassing analysts' predictions of 85 cents per share and $38.1 billion in revenue. Nvidia's CEO, Jensen Huang, highlighted the 'amazing' demand for Blackwell, emphasizing the role of increased compute power in enhancing AI model intelligence. Data center sales were a major contributor, reaching $35.6 billion – a 93% year-over-year increase. This growth aligns with the White House's initiative involving a $500 billion investment in AI infrastructure, a project where Nvidia is a partner. Nvidia's CFO, Colette Kress, revealed that Blackwell sales exceeded expectations, hitting $11 billion in Q4 – the fastest product ramp in the company's history. Large cloud service providers accounted for about 50% of their data center revenue. Nvidia's market value has exploded to over $3 trillion, making it the second-largest company on Wall Street. Despite concerns about inflation and potential economic challenges, Nvidia's success, along with other AI-related companies, has propelled the S&P 500 to record highs. While acknowledging uncertainty surrounding potential tariffs, Nvidia expressed its commitment to complying with any export controls or tariff regulations. The company also addressed the impact of DeepSeek's new AI model, which briefly caused a dip in Nvidia's stock value but was ultimately viewed as a positive development for the industry. Huang anticipates the next wave of AI innovation, including agentic AI, physical AI, and sovereign AI, with Nvidia at the forefront of these advancements.