Nvidia’s Blowout Earnings: AI Giant Crushes Expectations with $39 Billion in Q4 Revenue
Alright, let’s talk about Nvidia—because wow, this company just dropped some jaw-dropping numbers! Nvidia reported an absolutely massive $39.3 billion in revenue for its fourth fiscal quarter, completely smashing Wall Street expectations. Analysts were looking for around $38.1 billion, but Nvidia went beyond that, showing once again why it’s the king of the AI revolution.
Their net income came in at $22.1 billion , marking a 71% jump in profits compared to the same quarter last year. And their year-over-year revenue growth? A staggering 78% ! Just for perspective, most other tech giants, including Apple, are seeing single-digit growth at best—Nvidia is absolutely dominating.
Now, let’s break down the numbers a bit. The biggest driver? Nvidia’s datacenter business , which includes those powerful GPUs that fuel artificial intelligence. This division alone brought in $35.6 billion in sales , leaving behind the projected $33.5 billion analysts had predicted. Demand for AI infrastructure is still skyrocketing, and Nvidia’s GPUs remain the gold standard. In fact, CEO Jensen Huang described the demand as nothing short of "amazing," especially for their Blackwell GPU system, which launched last year.
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Looking ahead, Nvidia expects to pull in $43 billion in revenue for the next quarter , slightly ahead of Wall Street’s estimates. But despite the blowout earnings, Nvidia’s stock actually dipped slightly in after-hours trading . Why? Well, it seems investors were a bit concerned about a slight drop in gross profit margins. Their CFO, Colette Kress, attributed this to the shift toward more complex and expensive AI systems in the datacenter business.
And let’s not forget—Nvidia has been on a bit of a rollercoaster in recent weeks. The stock dropped nearly 10% over the past month following the release of DeepSeek AI, a model from China that shook up the market. Investors feared that cheaper AI alternatives might cut into Nvidia’s dominance. But even with this temporary shake-up, Nvidia still holds a staggering 95% market share in AI GPUs , according to Morgan Stanley.
To put it all into perspective, Nvidia closed 2024 as one of the best-performing stocks on the market, and its total net profit for the year hit an eye-watering $72.9 billion —a 145% increase from last year. Just insane growth!
Despite the recent stock dip, most analysts remain very bullish on Nvidia. The average price target sits at $175 , which would be a 38% upside from its current levels. Some analysts even believe this earnings report could mark the turning point for investor sentiment, leading to another surge in the stock price.
At the end of the day, one thing is clear— Nvidia is still the undisputed leader in AI . While competitors are emerging, and investors are always cautious about growth sustainability, the company continues to deliver record-breaking numbers quarter after quarter .
So, what do you think? Is Nvidia still a buy, or do you see some challenges ahead for the AI giant?
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