Nvidia reported a significant surge in fourth-quarter profit and sales driven by the increasing demand for its specialized Blackwell chips, which power artificial intelligence systems. The tech giant, based in Santa Clara, California, posted revenue of $39.3 billion for the three months ending Jan. 26, marking a 12% increase from the previous quarter and a substantial 78% rise from the same period last year. Adjusted for one-time items, the company earned 89 cents a share.
Nvidia Founder highlighted the remarkable demand for Blackwell chips, emphasizing how AI advancements are enhancing computational capabilities for training and reasoning. The company has accelerated the production of Blackwell AI supercomputers, achieving billions of dollars in sales in its initial quarter.
The earnings report exceeded Wall Street expectations, with net income reaching $22.06 billion in the fourth quarter, surpassing analysts' predictions. Nvidia anticipates continued growth, forecasting revenue of around $43 billion for the first quarter of fiscal 2026.
Data center sales, a significant revenue source for Nvidia, experienced a notable uptick, with fourth-quarter revenue reaching $35.6 billion, up 93% from the previous year.
The company's involvement in the Stargate project, a joint venture focused on AI infrastructure investment, further solidifies its position in the AI market. Nvidia's CFO highlighted the exceptional Blackwell sales performance, with large cloud service providers driving approximately 50% of data center revenue.
Nvidia's market value has soared, making it the second-largest company on Wall Street, valued at over $3 trillion. The company's growth, along with other AI beneficiaries, has contributed to the S&P 500's record-breaking performance despite economic concerns.
While uncertainties remain regarding tariffs and export controls, Nvidia remains vigilant and committed to compliance with regulations. The company's recent earnings report coincided with the emergence of DeepSeek, a Chinese company boasting a competitive language model that utilizes Nvidia chips efficiently for AI training.
Nvidia acknowledged DeepSeek's innovation and its impact on the AI landscape, emphasizing the global enthusiasm it has generated. The company sees the future of AI evolving with advancements in agentic AI for enterprise, physical AI for robotics, and sovereign AI tailored to regional ecosystems.
Nvidia remains at the forefront of AI development, poised to navigate the evolving landscape and capitalize on emerging opportunities in the AI sector.
