Fri Feb 28 03:10:00 UTC 2025: ## Nvidia’s Stunning AI-Fueled Earnings Beat Expectations, But Stock Remains Cautious
**Santa Clara, CA –** Nvidia, the leading artificial intelligence chipmaker, reported blowout fourth-quarter earnings Wednesday, significantly exceeding analysts’ expectations, yet its stock price reacted with only modest gains. The company announced revenue of $39.3 billion, a 78% year-over-year increase, dwarfing the growth of other tech giants like Apple, Microsoft, and Google. This success was largely driven by the strong demand for its new Blackwell family of AI chips, which generated $11 billion in revenue in its first quarter, far surpassing the predicted $3.5 billion. Nvidia also projected $43 billion in revenue for the next quarter, further defying concerns about a potential sales slowdown.
Despite the impressive results, Nvidia’s stock experienced a slight dip in after-hours trading. While the revenue beat was substantial, it represented the smallest margin since the AI boom began in early 2023. The company also acknowledged that Blackwell’s launch would temporarily impact gross margins, although they are still expected to remain significantly higher than industry averages.
The market’s tempered reaction is attributed to growing concerns about an impending AI bubble. Recent reports of potential cutbacks in data center expansions by companies like Microsoft, and earlier controversies surrounding the actual computing costs of advanced AI models, have fueled investor anxieties. Nvidia’s stock price, despite Wednesday’s gains, remains down 11% from its recent peak.
However, Nvidia remains optimistic. The company anticipates continued strong demand fueled by massive planned capital expenditures by tech giants in the AI sector. Next month’s GTC conference is expected to showcase new products, further solidifying Nvidia’s leadership in the burgeoning AI market. Despite the challenges and market uncertainties, Nvidia, now a $3 trillion company, appears poised to continue its remarkable growth trajectory, albeit with a higher bar set by its own recent successes.
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