Nvidia Posts Record Q4 Earnings Amid AI Surge

SANTA CLARA, Calif. — Nvidia Corporation (NASDAQ: NVDA) reported exceptional fourth-quarter financial results for fiscal 2025 on February 26, highlighting a record revenue of $39.3 billion, which marks a 78% increase compared to the same period a year ago. The strong earnings report exceeded Wall Street’s expectations, driven primarily by the global demand for its AI microchips and data center graphics processors.

The chipmaker’s GAAP earnings per diluted share rose to $0.89, compared to $0.49 in the previous year. Analysts had anticipated earnings of $0.85 per share. In a statement, CEO Jensen Huang expressed strong confidence in the company’s future, stating, “Demand for Blackwell is amazing as reasoning AI adds another scaling law.”

Nvidia’s data center revenue alone reached $35.6 billion in the fourth quarter, representing a significant 93% year-over-year increase and surpassing expectations of $33.65 billion. This segment, which now constitutes 91% of Nvidia’s total sales, has seen its revenue increase nearly tenfold over the past two years, driven by sales of its Blackwell and previous generation Hopper AI chips.

The company forecasted revenue of approximately $43 billion for the first quarter of fiscal 2026, plus or minus 2%, exceeding analysts’ estimates of $41.78 billion. Chief Financial Officer Colette Kress noted, “We expect a significant ramp of sales of Blackwell, our next-generation AI chip, in the first quarter.”

Despite the positive financial results, Nvidia experienced a decline in its gaming segment, which reported sales of $2.5 billion, falling short of the anticipated $3.04 billion. This segment saw an 11% decrease in sales year-over-year. Nevertheless, Huang emphasized the company’s strong positioning within the AI market, stating that Nvidia’s technology continues to be unmatched, even in the wake of emerging competition.

Nvidia’s total fiscal year revenue for 2025 totaled $130.5 billion, representing a staggering 114% increase from the previous year. With gross margins resting at approximately 73%, down three percentage points from the prior year, the company is still significantly above industry averages.

The company’s strategic partnerships with major cloud providers, including Amazon Web Services and Microsoft Azure, have solidified its standing as a leading provider of AI infrastructure. Nvidia has also made strides in other markets, notably in automotive technology, where it reported a 103% year-over-year increase in sales to $570 million.

Nvidia’s shares reacted positively to the earnings news, rising 2% in after-hours trading, reflecting a 67% growth over the past 12 months. Analysts maintain a consensus strong buy rating on Nvidia, projecting an upside of approximately 35.49% based on its current price.

As companies globally continue to invest in AI technologies, Nvidia’s advancements suggest that it will remain influential in shaping the industry’s future. The company plans to host a conference call with analysts later today to discuss its financial results and outlook.