Nvidia's SHOCKING $39.3 Billion Quarter: AI Boom Sends Stock Soaring!

2025-02-27 07:40:28.983

Nvidia announced a phenomenal fourth-quarter profit and sales surge, fueled by the massive demand for its Blackwell AI chips. Revenue reached $39.3 billion, a 12% increase from the previous quarter and a staggering 78% year-over-year growth. Adjusted earnings per share hit 89 cents, exceeding analyst predictions. Nvidia's CEO, Jensen Huang, attributed the success to the increasing importance of compute power in AI, stating that "demand for Blackwell is amazing." Data center sales were a key driver, reaching $35.6 billion, a 93% year-over-year increase. This growth is partly linked to a new AI infrastructure project involving OpenAI, Oracle, SoftBank, and Nvidia, which aims to invest up to $500 billion. Nvidia's CFO, Colette Kress, highlighted the exceptional performance of Blackwell sales, exceeding expectations at $11 billion in the fourth quarter. Large cloud service providers accounted for roughly 50% of data center revenue. Nvidia's market capitalization has soared to over $3 trillion, making it the second-largest company on Wall Street. The company's success has significantly contributed to the recent record highs of the S&P 500, despite economic concerns. While acknowledging uncertainty regarding potential tariffs, Nvidia remains optimistic about future growth, projecting $43 billion in revenue for the first quarter of fiscal 2026. The company also addressed the impact of DeepSeek's new AI model, acknowledging its innovation while emphasizing its compliance with export controls. Huang highlighted the "next wave" of AI, including agentic AI, physical AI, and sovereign AI, with Nvidia positioned at the center of these developments.