Nvidia Rides AI Boom to Record Revenue, Eyes Strong 2025 Growth

Nvidia continues to dominate the AI hardware market, delivering fourth-quarter earnings that exceeded expectations and setting an optimistic outlook for the months ahead.

The company’s revenue reached $39.33 billion, outperforming projections, while its forecast for the first quarter suggests continued momentum, with an estimated $43 billion in revenue. Despite slowing growth compared to last year’s explosive expansion, Nvidia remains confident in its trajectory.

A key driver of this success is the surging demand for AI processors, particularly the company’s next-generation Blackwell chips. CFO Colette Kress highlighted that Blackwell is experiencing the fastest adoption in Nvidia’s history, with major cloud providers fueling sales. The data center division, which now accounts for 91% of total revenue, saw a staggering 93% annual growth, bringing in $35.6 billion.

CEO Jensen Huang dismissed concerns about competition from custom AI chips developed by major tech firms, emphasizing that designing a chip is not the same as deploying it at scale. He also noted that emerging AI models with deeper reasoning capabilities could significantly increase demand for Nvidia’s processors, potentially requiring up to 100 times more computing power.

While AI remains Nvidia’s primary growth engine, other business segments showed mixed results. Gaming revenue fell 11% year-over-year to $2.5 billion, missing expectations, while automotive chip sales more than doubled to $570 million. Meanwhile, Nvidia invested heavily in share buybacks, spending $33.7 billion to reinforce investor confidence.

As AI technology evolves, Nvidia is positioning itself as the industry’s backbone, betting on its advanced chips to drive future growth and maintain its competitive edge.