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

2025-02-27 08:06:13.039

Nvidia announced a phenomenal fourth-quarter profit and sales surge, driven by the soaring demand for its Blackwell chips, crucial for powering artificial intelligence systems. For the three months ending January 26th, the company reported a revenue of $39.3 billion—a 12% increase from the previous quarter and a staggering 78% year-over-year growth. Adjusted earnings reached 89 cents per share, exceeding Wall Street's projections of 85 cents per share and $38.1 billion in revenue. Net income hit $22.06 billion, surpassing analyst predictions of $19.57 billion. Nvidia's CEO, Jensen Huang, attributed this success to the "amazing" demand for Blackwell chips, highlighting the increasing importance of compute power in enhancing AI model intelligence. Data center sales, a major revenue contributor for Nvidia, saw a remarkable 93% year-over-year growth, reaching $35.6 billion in the fourth quarter. This growth aligns with President Trump's initiative to invest $500 billion in AI infrastructure through the Stargate project, a joint venture involving OpenAI, Oracle, SoftBank, and Nvidia. 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 capitalization has skyrocketed to over $3 trillion, making it the second-largest company on Wall Street. This growth has significantly contributed to the recent record highs of the S&P 500, despite concerns about inflation and potential economic challenges. While acknowledging uncertainty regarding the impact of potential tariffs, Nvidia remains committed to complying with export controls and tariff regulations. The company also addressed the recent emergence of DeepSeek, a Chinese AI company, acknowledging its advancements while emphasizing the export compliance of the technology used. Huang expressed optimism about the future of AI, anticipating a "next wave" encompassing agentic AI, physical AI, and sovereign AI. Nvidia's central role in this development was highlighted, promising continued growth and innovation.