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

2025-02-27 08:03:24.933

Nvidia announced a record-breaking fourth quarter, with revenue reaching $39.3 billion—a 12% increase from the previous quarter and a staggering 78% year-over-year growth. This surge is largely attributed to the skyrocketing demand for their Blackwell chips, which power artificial intelligence systems. Adjusted earnings per share reached 89 cents, exceeding analyst predictions of 85 cents and $38.1 billion in revenue. Data center sales were a key driver, reaching $35.6 billion—a 93% increase year-over-year. Nvidia's CEO, Jensen Huang, highlighted the "amazing" demand for Blackwell chips, emphasizing the role of increasing compute power in enhancing AI models. The company forecasts continued growth, projecting approximately $43 billion in revenue for the first quarter of fiscal 2026. Nvidia's success is intertwined with the broader AI boom and major projects like the Stargate initiative, a joint venture involving OpenAI, Oracle, SoftBank, and Nvidia itself, aimed at building AI infrastructure. Despite concerns about tariffs and inflation, Nvidia's strong performance and the overall AI boom have propelled the S&P 500 to record highs. The company's impressive growth has also been noted amidst the emergence of Chinese AI company DeepSeek, which developed a cost-effective large language model. Nvidia acknowledged DeepSeek's innovation, emphasizing the widespread use of its technology. Looking ahead, Nvidia anticipates the next wave of AI innovation, focusing on agentic AI, physical AI, and sovereign AI development, positioning itself as a central player in this transformative technological landscape.