Nvidia Reports Strong Q4 Earnings; Sales up 78%

Nvidia reported its Q4 earnings. The company posted a revenue of $39.3 billion, up by 12% from the previous quarter and 78% from the corresponding period a year ago.

The surge in revenue can be attributed to skyrocketing demand for its GPUs in the artificial intelligence sector. The production of Blackwell AI supercomputers skyrocketed in its first quarter, thereby setting the tone for the next AI revolution.

Dilin Wu Research Strategist at Pepperstone said, “The new Blackwell AI chips set a sales record, contributing $11 billion in their debut quarter—31% of data center revenue—making them NVIDIA’s fastest-growing product ever. CEO Jensen Huang emphasized in the earnings call that demand for Blackwell is ‘exceptionally strong,’ particularly in AI inference applications,”

Nvidia CEO Jensen Huang remarked on the astounding role of artificial intelligence and skyrocketing solutions following post-training of AI models.

Antonio Di Giacomo, Senior Market Analyst at XS.com said, “These innovations represent the next step in automation and process simulation, with applications in industries such as robotics, industrial simulation, and digital service personalization.”

During the pre-market session on February 27, Nvidia shares were up by 1%.

“What seems to be driving the share reaction is that it’s yet another typical Nvidia report where they beat and raise expectations. For them to have this track record of doing that every time, in some way almost works against them as the market is not impressed unless it is a blowout beat and raise. Just beating and raising is not good enough for this stock to get going to the upside in a meaningful way,” says Ken Mahoney, CEO of Mahoney Asset Management.

However, Nvidia’s adjusted gross margins were down by 71% during this quarter. Additionally, gaming and networking revenue during the fourth quarter was down on a year-on-year basis.