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Nvidia’s latest earnings have beaten Wall Street estimates on the top and bottom line as the chip maker said AI is advancing at “light speed.”
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Chip-making giant Nvidia has beaten Wall Street expectations with its latest earnings, with a nearly 80% jump in revenue year-on-year due to sales of its artificial intelligence-centered microchips.
In a Feb. 26 earnings report for its 2025 fiscal year and fourth quarter ended Jan. 26, Nvidia announced revenues of $39.3 billion for the quarter — up 12% from its previous quarter and up 78% from the same quarter a year ago.
Zacks Investment Research said Wall Street revenue estimates pegged revenue at only $37.72 billion, while earnings per share of 89 cents beat expectations of 84 cents.
Nvidia founder and CEO Jensen Huang said on an earnings call that the earnings uptick was thanks to “amazing” demand for its microchip Blackwell — designed for AI, machine learning and high-performance computing.
“AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries.”
Nvidia’s data center revenue accounted for over 90% of the firm’s total revenues, hitting $35.6 billion, up 93% from a year ago.
Shares in Nvidia Corp (NVDA) closed trading on Feb. 26 up 3.67% to $131.28, according to Google Finance.
NVDA’s share price fell 1.49% after hours to $129.32. Source: Google Finance
It’s still down from its all-time high set In November when the stock closed at over $147.
Late last month, on Jan. 27, Nvidia saw the largest one-day value drop in US stock market history when its shares closed down nearly 17% — wiping out almost $600 billion in value amid investor panic after Chinese AI firm DeepSeek released a model that reportedly rivaled OpenAI’s ChatGPT.
Huang has previously said his firm is focused on being at the forefront of agentic AI as the race around the tech heats up.
Other US firms have also begun ramping up AI expansion. Microsoft said in September that it was establishing two AI centers in Abu Dhabi, which was among the significant AI investments throughout 2024.
At the same time, Bitcoin (BTC) mining companies have been diversifying their income streams to include AI, converting some of their crypto mining operations over to help run compute-intensive large language models.
Related: Trump swings axe on Biden’s sweeping AI executive order
In August, asset manager VanEck estimated that if publicly traded Bitcoin mining companies shifted 20% of their energy capacity to AI and high-performance computing by 2027, they could increase additional yearly profits by $13.9 billion over 13 years.
The decline in Nvidia’s valuation is considered a “bullish development” for Bitcoin, according to a Jan. 27 report by research firm 10x Research.
The firm suggested that reduced spending on AI could help ease inflation, which could lead to more favorable monetary policy from the US Federal Reserve.
This article first appeared at Cointelegraph.com News
