Nvidia’s AI Boom Continues: Q4 Sales Surge 78%, Strong Forecast Ahead

2/26/2025

Nvidia once again delivered blockbuster earnings, smashing Wall Street expectations and reaffirming its dominant position in the AI-driven chip market. The company’s latest report underscores its ability to sustain massive growth well into 2025.

🔹 Q4 Highlights (Beating Estimates):

  • Revenue: $39.33B (vs. $38.05B expected).

  • Earnings Per Share (EPS): $0.89 (vs. $0.84 expected).

  • Net Income: $22.09B (up from $12.29B YoY).

  • Data Center Revenue: $35.6B (up 93% YoY).

🔹 Q1 2025 Guidance (Above Forecasts):

  • Revenue: $43B (vs. $41.78B expected).

  • Gross Margin: 70.6%.

🔹 AI & Blackwell Chips Lead the Charge:

  • Nvidia’s Blackwell AI chips brought in $11B in Q4, making it the fastest product ramp in company history.

  • Cloud providers accounted for 50% of Data Center revenue.

  • Despite concerns over low-cost AI models (e.g., DeepSeek R1), Nvidia insists AI models will still need 100x more chips over time.

🔹 Other Business Segments:

  • Gaming Revenue: $2.5B, down 11% YoY, missing expectations.

  • Automotive Chips: $570M, up 103% YoY.

  • Networking Sales: $3B, down 9% YoY.

🔹 Stock Buybacks & Market Reaction:

  • $33.7B spent on share repurchases in fiscal 2025.

  • Stock jumped nearly 3% in after-hours trading.

With AI demand skyrocketing, Nvidia remains the undisputed leader in the chip industry, showing no signs of slowing down. 🚀