Nvidia Corp (NVDA) has surpassed Wall Street forecasts again, reporting a staggering 78% year-over-year revenue increase, fueled by soaring demand for artificial intelligence-focused microchips.
The chip-making giant announced its fourth-quarter earnings for the 2025 fiscal year, ending on January 26, with revenue reaching $39.3 billion—up 12% from the previous quarter and exceeding analyst expectations of $37.72 billion. The company also surpassed earnings per share (EPS) estimates, reporting 89 cents compared to the anticipated 84 cents, according to Zacks Investment Research.
Nvidia’s founder and CEO, Jensen Huang, attributed the company’s rapid growth to an “amazing” surge in demand for its Blackwell microchips. Designed specifically for artificial intelligence, machine learning, and high-performance computing, Blackwell has played a crucial role in Nvidia’s recent financial success.
“AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries,”
Huang stated during the earnings call.
Nvidia’s data centre segment generated $35.6 billion, marking a 93% increase from the previous year, confirming its dominance in the AI-driven computing sector. Following the earnings announcement, Nvidia’s stock (NVDA) closed 3.67% higher at $131.28 on February 26, according to Google Finance, but remains below its all-time high of over $147 per share in November.
The company faced significant market volatility, experiencing the largest single-day value drop in U.S. stock market history on January 27, with a 17% decline leading to nearly $600 billion in market value loss, sparked by investor concerns over a competing AI model from Chinese firm DeepSeek according to data from Trading view.
Huang has reaffirmed Nvidia’s commitment to leading the AI revolution, particularly in the emerging field of agentic AI. Meanwhile, other major U.S. tech firms are ramping up their AI expansion. Elon Musk’s artificial intelligence company, xAI, launched Grok 3, the latest iteration of its chatbot model. Musk and the xAI team revealed that Grok 3 demonstrated superior performance across multiple AI evaluation tests.
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