Catenaa, Thursday, February 27, 2025- Nvidia has beaten Wall Street revenue expectations with revenue up by 78% year on year for the fourth quarter that ended in January 2025, while investors watch closely how the chipmaker is weathering DeepSeek’s powerful Al model.
Earnings report for Q4 of fiscal year 2025 released on Wednesday showed revenue at $ 39.3 billion, up 12% from the previous quarter and up 78% from a year ago. Wall Street’s expectation was $ 38.1 billion.
For fiscal 2025, revenue was $ 130.5 billion, up 114% from a year ago, while the expectation was $ 129.4 billion.
While the earnings per diluted share was $ 0.89, up 14% from the previous quarter and up 82% from a year ago, Wall Street was looking at $ 0.84.
“Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter,” said Jensen Huang, founder and CEO of NVIDIA.
“We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. 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,” he said.
Nvidia is expecting revenue of $43.0 billion, plus or minus 2% for the first quarter of fiscal year 2026.
The one-day drop of 17% in Nvidia shares on January 27 after DeepSeek’s revelation called into question all the spending Wall Street had assumed would go into not only Nvidia’s chips but also the ecosystem that’s built around the AI boom. The stock rose more than 170% in 2024.
In an interview with CNBC after the earnings report release, Nvidia CEO Huang said AI innovation like DeepSeek shows how software finds a way on whatever system is being targeted.
