Nvidia, the leading public company in market value and a significant player in the AI sector, has once again exceeded Wall Street’s expectations for the fourth quarter. The chipmaker announced its financial results after U.S. markets closed on Wednesday, revealing impressive figures that highlight a robust demand for its products. Nvidia reported a revenue of $68.1 billion, marking a staggering 73% increase compared to the same period last year. The company also posted adjusted earnings per share (EPS) of $1.62, comfortably beating analysts’ expectations of $66.1 billion in revenue and $1.54 in adjusted EPS.
In response to the earnings release, Nvidia’s shares surged by as much as 4% in post-market trading, though some of those gains were subsequently pared, leaving the stock up approximately 1% in after-hours trading. Investors are keenly awaiting Nvidia’s guidance, which predicts first-quarter revenue to reach around $78 billion, surpassing analyst forecasts of $72.9 billion. This forecast suggests a continued trajectory of AI-driven growth.
A significant driver of Nvidia’s impressive performance is its Data Center revenue, which reached a record $62.3 billion for the fourth quarter. This figure represents a 75% year-over-year increase and a 22% rise from the previous quarter, largely attributed to the ongoing shifts towards accelerated computing and AI technologies. Senior Analyst Thomas Monteiro from Investing.com remarked that the revenue surge counters narratives suggesting a slowdown in hyperscaler AI growth, reinforcing the notion that this sector remains firmly in an expansion phase.
During a conference call, CFO Colette Kress highlighted the dramatic growth of Nvidia’s data center business, which has effectively scaled by nearly 13 times since the introduction of ChatGPT. She assured stakeholders that the company has secured inventory and supply commitments necessary to meet future demand, extending shipments well into 2027.
President and CEO Jensen Huang maintained an optimistic outlook for the AI market, emphasizing that the computational demands for software are expected to grow substantially. He declared, “AI is here. AI is not going to go back. AI is only going to get better from here,” reflecting the company’s unwavering confidence in the sector’s potential.
In the wake of Nvidia’s results and guidance, cryptocurrencies related to AI maintained their momentum, with bitcoin hovering near $69,000 following a 10% uptick from earlier lows. AI-focused crypto tokens like Bittensor (TAO) and Internet Computer (ICP) also experienced gains post-announcement, although some of these increases were later moderated. Similarly, stocks of crypto miners, closely tied to AI and high-performance computing, saw slight gains after the earnings report, with companies such as IREN, Cipher Digital, and TeraWulf rising by 1% to 2%.
The overall market response underscores the critical role Nvidia continues to play within both the semiconductor and AI landscapes, further solidifying its status as a powerhouse in these rapidly evolving industries.
