Nvidia announced an adjusted profit of 89 cents per share, exceeding expectations of 84 cents, with revenue in the fourth quarter increasing 78% to $39.3 billion, surpassing the forecast of $38.04 billion.
Revenue from data centers reached $35.6 billion (growth of 93%), exceeding expectations of $33.59 billion. Investments by Microsoft and Meta in artificial intelligence amounted to $80 billion and $65 billion respectively, despite speculation about potential shortages in US data centers.
Chinese companies are increasing demand for Nvidia H20 chips in connection with the growing influence of DeepSeek. The expansion of Blackwell, despite its large audience, leads to higher costs affecting margins. In the fourth quarter, Nvidia received $11 billion from products related to Blackwell, which constitutes 50% of total revenue from data centers.
Beginning last month, when Nvidia's capitalization fell to $593 billion, it became the largest single loss for an American company, raising concerns among investors. Nevertheless, analysts believe that the major forecast for the first quarter 'erases concerns'. The authors of the forecast discovered that Nvidia's margin in the first quarter is 71%, lower than the forecast by Wolfe Street at 72.2%, but finance director Colett Kress assured that the margin will return to around 70% later this year with increased production.
The company also announced a data center project in the US under the name Stargate, announced by President Trump, which will use Nvidia Spectrum X Ethernet networking technology, enhancing the data center segment of the company.
Current market fluctuations in artificial intelligence, at a specific moment, did not affect Nvidia's demand from the largest cloud providers. As a result, stocks initially rallied on the news, and then subsequently dropped in the volatile after-hours trading, after a 3.7% rise in regular trading.
Nvidia, the largest beneficiary of hype around artificial intelligence stocks, has increased the value of its shares more than fourfold over the past two years. Initially evaluated on the London Stock Exchange, the earnings forecast for the first quarter at $43 billion (+12%) exceeded the consensus forecast of $41.78 billion.
Nvidia confirmed a strong forecast for the first quarter, reflecting strong demand for its chips for artificial intelligence and mitigating concerns about potential delays. General Director Jensen Huang remained optimistic, stating: "Artificial intelligence is advancing at the speed of light." The company is transitioning to a completely system of calculations with artificial intelligence based on the new Blackwell architecture, integrating graphics chips, processors, and networks. The company noted a high demand for its products following the arrival of the next generation of Blackwell, describing the demand as 'surprising'.
