Wed Feb 26 23:00:00 UTC 2025: ## Nvidia’s Q4 Earnings Exceed Expectations, Fueled by AI Boom

**Santa Clara, CA –** Nvidia announced blowout fourth-quarter earnings Wednesday, exceeding analyst predictions and offering strong guidance for the upcoming quarter. The results underscore the chipmaker’s continued dominance in the artificial intelligence market.

Revenue surged 78% year-over-year to $35.6 billion in the data center sector, exceeding expectations and representing a tenfold increase over the past two years. This segment, now comprising 91% of total sales, is driven by the massive demand for Nvidia’s GPUs, particularly its next-generation AI chip, Blackwell. Blackwell sales alone reached $11 billion during the quarter, marking the “fastest product ramp in the company’s history,” according to CFO Colette Kress. Large cloud service providers accounted for approximately 50% of data center revenue.

While overall fiscal year revenue reached $130.5 billion (a 114% increase), Nvidia anticipates a slight slowdown in growth. The company projects first-quarter revenue of approximately $43 billion, implying a still-impressive 65% year-over-year growth. This projection, however, represents a deceleration from the previous year’s 262% growth.

The strong results come despite a three-point year-over-year decrease in gross margin, attributed to the complexity and cost of newer data center products. Net income rose to $22.09 billion, compared to $12.29 billion in the same period last year.

Nvidia executives addressed concerns about potential competition from custom chips developed by tech giants and the emergence of more efficient AI models. They argued that the demand for sophisticated AI applications, requiring significantly more computing power, would continue to fuel the need for Nvidia’s high-performance chips.

While the company’s gaming business underperformed expectations, with sales declining 11% year-over-year, its automotive segment showed robust growth, with sales increasing 103% to $570 million. Nvidia also announced a significant $33.7 billion in share repurchases during its fiscal 2025.

Despite the slowing growth rate, Nvidia’s strong Q4 results and optimistic outlook solidify its position as a leading player in the rapidly expanding AI market. Shares remained relatively flat in after-hours trading.

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