Nvidia experienced significant revenue growth, exceeding analysts' expectations thanks to sales of AI-focused microchips.
Nvidia's Financial Performance
On February 26, Nvidia announced its earnings for the fourth quarter and fiscal year 2025, ending January 26. The company reported revenues of $39.3 billion for the quarter, up 12% from the previous quarter and up 78% from the same period last year. Zacks Investment Research noted that Wall Street had estimated revenue would not go beyond $37.72 billion.
Market and Nvidia's Shares
On February 26, Nvidia Corp (NVDA) shares closed with a rise of 3.67% at $131.28, according to Google Finance. However, they fell 1.49% to $129.32 in after-hours trading. The share price remains below its all-time high, set in November, when they closed at over $147.
Artificial Intelligence and Prospects
Nvidia CEO Jensen Huang attributed the earnings surge to “amazing” demand for its Blackwell chip designed for AI, machine learning, and high-performance computing. Huang stated, 'AI is advancing at light speed as agentic AI sets the stage for the next wave to revolutionize the largest industries.' The company's data center revenue accounted for over 90% of total revenue, reaching $35.6 billion, up 93% year-on-year.
Nvidia's results exhibit the company's strong performance amid growing demand for AI-powered solutions, aligning with global trends in AI technology growth.
