Artificial Intelligence chip demand "amazing" Nvidia's revenue grew by 80%

Author: Stephen Katte, CoinTelegraph; Translated by: Wuzhu, Golden Finance

The latest financial report of chip manufacturing giant Nvidia exceeded Wall Street expectations, and its revenue increased by nearly 80% year-on-year thanks to the sales of artificial intelligence-centric microchips.

In its fiscal year 2025 and fourth quarter financial reports ended January 26, Nvidia announced that revenue for the quarter was US$39.3 billion, an increase of 12% from the previous quarter and a 78% increase from the same period last year.

Zacks Investment Research said Wall Street expects revenue to be only $37.72 billion and earnings per share of 89 cents, up from 84 cents expected.

Nvidia founder and CEO Jensen Huang said on the earnings call that earnings growth is driven by the “stunning” demand for its microchip Blackwell, designed for artificial intelligence, machine learning and high-performance computing.

“Artificial intelligence is moving at the speed of light, as agent AI and physical AI lay the foundation for the next wave of AI revolutions to revolutionize the biggest industries.”

Nvidia's data center revenue accounted for more than 90% of the company's total revenue, reaching US$35.6 billion, an increase of 93% over the same period last year.

According to Google Finance, Nvidia Corp (NVDA) shares closed up 3.67% to $131.28 on February 26.

NVDA shares fell 1.49% after the session to $129.32. Source: Google Finance

The stock is still below its all-time high of more than $147 set in November last year.

At the end of last month, on January 27, Nvidia's stock price closed down nearly 17%, the biggest single-day drop in U.S. stock market history, with its market value evaporating nearly $600 billion amid investors' panic, after Chinese AI company DeepSeek released a model that is said to be comparable to OpenAI's ChatGPT.

Huang Renxun had previously stated that as technology competition becomes increasingly fierce, his company is focused on being at the forefront of proxy AI.

Other U.S. companies have also begun to increase their efforts to expand AI. Microsoft said in September it will build two AI hubs in Abu Dhabi, one of the important AI investments throughout 2024.

Meanwhile, Bitcoin mining companies have been diversifying their revenue streams, including artificial intelligence, to convert some of their crypto mining operations into large language models that help run compute-intensive.

In August, asset manager VanEck estimated that if listed Bitcoin mining companies transfer 20% of their energy capacity to artificial intelligence and high-performance computing by 2027, they could add an additional $13.9 billion in profits per year over 13 years.

According to a Jan. 27 report by research firm 10x Research, the decline in Nvidia's valuation is considered a "good development" for Bitcoin.

The company said reducing spending on artificial intelligence could help ease inflation, which could lead to the Fed's more favorable monetary policy.