Nvidia beats Wall Street expectations with 80% revenue surge from AI chips

Nvidia's data center revenue soared 93%, contributing over 90% of total quarterly revenue.

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Nvidia has exceeded Wall Street’s expectations, reporting a nearly 80% year-on-year surge in revenue, fueled by strong demand for its artificial intelligence (AI)-focused microchips.

In its earnings report for the fiscal year 2025, ending January 26, Nvidia announced a revenue of $39.3 billion for the fourth quarter, marking a 12% increase from the previous quarter and a 78% jump from the same period last year.

Wall Street analysts had estimated revenue at $37.72 billion, while the company posted earnings per share of 89 cents, surpassing the expected 84 cents.

Nvidia's founder and CEO, Jensen Huang, attributed the significant earnings boost to strong demand for its Blackwell microchips, designed for AI, machine learning, and high-performance computing.

“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.

Data center revenue, which now represents more than 90% of Nvidia's total revenue, reached $35.6 billion, up 93% compared to the previous year.

Despite the company’s impressive earnings, Nvidia's stock saw a 3.67% increase, closing at $131.28 on February 26, although it remains down from its all-time high of over $147 in November.

This positive earnings report comes after a sharp drop in Nvidia’s valuation in late January, when the company experienced the largest one-day value drop in US stock market history, with its shares plummeting nearly 17%.

The drop was triggered by concerns over competition after Chinese AI firm DeepSeek unveiled a model said to rival OpenAI’s ChatGPT, wiping out nearly $600 billion in Nvidia’s market value.

Nvidia continues to push forward in the rapidly growing AI sector, with Huang emphasizing the company's focus on staying ahead in agentic AI development as the tech race intensifies.

Other US companies have also ramped up AI investments, including Microsoft, which announced plans in September to establish two AI centers in Abu Dhabi.

In a related development, Bitcoin (BTC) mining companies have started diversifying their operations, shifting part of their energy capacity to AI and high-performance computing.

A report by VanEck in August estimated that if Bitcoin miners allocated 20% of their energy to AI by 2027, it could generate an additional $13.9 billion in profits over 13 years.

Despite Nvidia's valuation decline, some analysts see this as a positive development for Bitcoin, suggesting that reduced AI spending could help ease inflation, potentially leading to more favorable monetary policy from the US Federal Reserve.