Nvidia, one of the world’s largest chipmakers, exceeded expectations with its financial results for the fourth quarter of fiscal 2025, demonstrating the impact of the extraordinary demand for artificial intelligence (AI) chips.
Showing strong growth throughout the year, the company grew revenues by 78% year-on-year to $39.3 billion. This increase demonstrates Nvidia’s consolidation of its leadership in AI and high-performance computing (HPC).
Artificial Intelligence Drives Nvidia’s Growth
The company’s biggest source of revenue was data center chips. Demand for AI-focused Blackwell chips in particular helped Nvidia break a record in revenues.
CEO Jensen Huang emphasized that the company’s growth was supported by the rapid developments in the AI sector and stated that artificial intelligence has started a new wave of transformation:
“AI is moving at the speed of light. AI technologies are accelerating the transformation of industries, and Nvidia is at the center of this change.”
The data center segment accounted for more than 90% of the company’s total revenue, reaching $35.6 billion. That’s a massive 93% growth over the same period last year.
Nvidia Shares on the Rise but Behind the Peak
Nvidia’s financial reports pleased investors and on February 26, the company’s shares (NVDA) rose 3.67% to $131.28.
However, the company’s shares are still trading below the historic high of $147 reached in November.
Nvidia also suffered one of the biggest daily losses in the history of the US stock market at the end of January, dropping 17% and losing nearly $600 billion in market capitalization. The sharp decline came as investors panicked following news that China-based AI company DeepSeek was developing a rival AI to OpenAI’s ChatGPT model.
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