AI giant Nvidia’s fourth fiscal quarter earnings belied expectations with revenues of $39.3 billion, for an impressive 78% year-on-year growth. Nvidia Revenue also reported adjusted EPS of $0.89 and net income of $22.1 billion, higher than a revenue expectation of $38.1 billion with EPS of $0.85 and net income of $19.6 billion, projected by the analysts.
The data centre unit accounted for a major part of sales into Nvidia’s stellar performance, which basically consists of powerful GPUs required to run generative AI models. The segment rang in $35.6 billion in sales as against expectations of $33.5 billion from the analysts.
Despite an impressive revenue haul, Nvidia shares dipped slightly in after-hours trading. Some analysts argued that the stock price drop was mainly a reaction to a slight decrease in gross profit margin. CFO Colette Kress pointed out that this was due to a transition to more complex and higher-cost systems within the data centre business.
Nvidia sees this positive financial performance in the spring as a good sign for the future. The forecast for revenue in the spring quarter is $43 billion, which is somewhat greater than Wall Street’s expectation of $42.7 billion. “The demand for all of Nvidia’s products, but in particular the Blackwell GPU system that was launched in quantity last fall, is amazing,” said CEO Jensen Huang, indicating further strong growth in AI.
Followed by a bumpy ride due to huge fluctuations in the market following the release of a less-techy AI model from China’s DeepSeek AI, this is a strong positive earnings report for Nvidia. Last month, the biggest single-day loss in market value was witnessed in Nvidia’s history, making this earnings report all the more meaningful as it demonstrates Nvidia’s resilience and strong financial results.
All in all, despite market challenges, Nvidia’s stellar performance cements its dominant position in the fast-growing spheres of AI and datacenter.
