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Nvidia beat Wall Street’s estimates on Wednesday as the continuing boom in AI infrastructure propelled the world’s most valuable company past $200bn in annual revenue and $100bn in net income for the first time.
Nvidia said it expects revenue of $78bn for the current quarter, well above consensus analyst estimates of $72.1bn compiled by Visible Alpha, as tech giants continue to pour hundreds of billions of dollars into AI chips and data centres.
The semiconductor behemoth reported revenue of $68.1bn for the final quarter of its financial year, which ends in late January, up 73 per cent from a year ago and ahead of Wall Street expectations of $66.2bn and its prior guidance of roughly $65bn.
Data centre revenue — which refers to Nvidia’s AI chip technology, including its current generation Blackwell hardware launched last year — was $62.3bn, better than estimates of $60.5bn.
“Computing demand is growing exponentially . . . Our customers are racing to invest in AI compute,” chief executive Jensen Huang said.
Nvidia shares rose 3 per cent in after-hours trading immediately after the announcement.
Its earnings — considered a bellwether for the AI boom because of its chips’ crucial role in running the technology — came after weeks of stock market volatility triggered by anxieties over how AI could upend traditional industries as well as concerns about Big Tech’s astronomical spending spree on AI data centres.
Markets steadied ahead of Nvidia’s announcement on Wednesday, with the tech-heavy Nasdaq up 1.3 per cent, while Nvidia shares closed 1.4 per cent higher.
