Nvidia reported a surge in fourth-quarter profit and sales, driven by growing demand for its specialized Blackwell chips powering artificial intelligence systems. The tech giant posted revenue of $39.3 billion, up 12% from the previous quarter and 78% from one year ago.
The company’s Blackwell sales exceeded expectations, with revenue reaching $11 billion in the fourth quarter. Demand is driven by the increasing adoption of reasoning AI, which enhances model performance through increased compute for training and long thinking.
Nvidia has ramped up production of its massive-scale AI supercomputers, achieving billions of dollars in sales in its first quarter. The company expects continued growth, forecasting revenue of around $43 billion for the first quarter of fiscal 2026.
The growth in data center sales, which account for most of Nvidia’s revenues, was driven by a joint venture investing up to $500 billion in AI-related infrastructure through the Stargate project. As part of this project, Nvidia is expanding its partnerships with OpenAI, Oracle, and SoftBank.
Nvidia’s stock surged after hours following the earnings report, with the company now worth over $3 trillion. The tech giant’s growth has contributed significantly to the S&P 500 reaching record highs in recent months, driven by profits from AI boom companies like Nvidia and Apple.
Despite concerns about tariffs, Nvidia’s CFO stated that the company would follow any export controls or tariff rules. However, some investors took a hit after Chinese company DeepSeek briefly vanished $595 billion in Nvidia’s wealth due to its claims of developing a competitive large language model using Nvidia chips.
Source: https://www.thehindu.com/sci-tech/technology/nvidia-sales-surge-in-the-fourth-quarter-on-demand-for-ai-chips/article69268913.ece