Nvidia reported a 94% increase in profit and record sales for the fourth quarter, helping ease concerns over a possible artificial-intelligence bubble that rippled through markets in recent months.
The chip maker reported net income of $43 billion, up from $22.1 billion in the year-earlier quarter, on sales of $68.1 billion, up 73% from $39.3 billion a year earlier, easily beating consensus estimates.
Analysts polled by FactSet had predicted net income of $37.5 billion and revenue of $66.1 billion for the quarter.
Data center hardware—the chips and networking equipment that Nvidia sells to AI and cloud-computing companies—accounted for 91.4% of the quarter’s sales, or $62.3 billion, and the segment’s revenue grew slightly faster than the company’s overall sales.
“The simple way to think about it is, computing has changed,” Nvidia Chief Executive Jensen Huang said on Wednesday’s earnings call with investors. “In this new world of AI, compute equals revenues…I am certain at this point that we’ve reached the inflection point” where agentic AI is upending how business is done worldwide and selling AI tools is starting to generate real profits.
With each passing quarter, the pressure grows on Nvidia—which at a market value of nearly $5 trillion is the world’s largest publicly traded company—to beat Wall Street’s expectations.
“It’s no longer enough for Nvidia to produce good quarterly results,” said Daniel Newman, chief executive of tech research and advisory firm Futurum Group. “They have to produce perfect quarterly results.”
Nvidia’s gross margins, which have been rising steadily for the past year, hit 75% in the January quarter, up from 73% a year earlier, in line with analysts’ predictions.
In recent months, investors have sent tech stocks on a wild ride as worries about the AI trade have risen, then subsided, only to resurface. Nvidia’s share price fell as low as $170.94 in mid-December but has recovered to over $196.
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