NVIDIA Profit Soars 145% in Strong Q4 Results

NVIDIA has announced its financial results for Q4 and the full year of fiscal 2025, which ended on January 26, 2025, revealing impressive growth. In Q4, the company reported a 78% year-over-year increase in revenue, reaching $39.33 billion, with a 12% quarter-over-quarter growth. Net income also saw a significant rise, up 80% from the previous year, totaling $22.09 billion, with a 14% quarter-over-quarter increase. For the full year, NVIDIA's revenue reached $130.5 billion, a remarkable 114% year-over-year growth, while net income surged 145%, totaling $72.88 billion.

Among NVIDIA's various business segments, its Data Center business was the standout performer. In Q4, revenue from this segment hit a record-breaking $35.6 billion, reflecting a 93% year-over-year increase and a 16% quarter-over-quarter rise. For the full fiscal year, Data Center revenue soared to $115.2 billion, up 142% compared to the previous year. NVIDIA attributes this strong growth to the explosive global demand for AI computing, with major technology companies expanding AI infrastructure and businesses accelerating digital transformation. As a result, there is a significant need for NVIDIA's high-performance computing chips.

Cloud service providers such as Amazon Web Services, Google Cloud, and Microsoft Azure have actively integrated NVIDIA's AI acceleration cards to meet the surging demand for artificial intelligence.

NVIDIA's flagship AI chip, the Blackwell series, generated $11 billion in revenue in Q4, marking the fastest revenue growth for any new product in the company's history. CEO Jensen Huang commented during the earnings call, "The demand for Blackwell chips has been extraordinary, and NVIDIA has successfully scaled production of Blackwell AI supercomputers, achieving billions in sales in the first quarter. The supply chain issues for Blackwell have been fully resolved, and we are significantly increasing production. The next-generation Blackwell Ultra chips are slated for release in the second half of 2025."

Huang also discussed the new expansion rules for AI inference, stating, "Increasing compute power for training makes models smarter, while boosting compute power for deeper reasoning makes the answers smarter." This highlighted the critical role of Blackwell chips in meeting market demand for AI inference, underscoring the mutually beneficial relationship between NVIDIA and DeepSeek.

Huang further praised the DeepSeek-R1, stating, "DeepSeek-R1 has sparked global excitement and is an excellent innovation. More importantly, it has open-sourced a world-class inference AI model. Such models apply reasoning time extensions, which can consume up to 100 times more computing power, with future inference models expected to consume even more. This success showcases the practicality of NVIDIA's chips and emphasizes the growing demand for NVIDIA GPUs and high-performance networks in the inference stage."

Despite the positive financial results and Huang's favorable comments on DeepSeek's impact, NVIDIA's stock experienced significant volatility in after-hours trading, ultimately closing down by 0.75% following the analyst call.