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NVIDIA’s revenue soared from the quarter to the end of January as its AI-focused chips flourished.
The company said its sales rose 78% year-on-year in the Bloomberg survey, exceeding the $39.3 billion estimate. The group expects revenue for the quarter to be $43 billion, plus or minus 2%, roughly in line with Wall Street expectations.
Nvidia has been one of Wall Street’s outstanding stocks over the past two years, helping to make the overall market higher, as investors dare bet that it will be one of the beneficiaries of the rapid growth of AI.
But the stock fell earlier this year in terms of the complex tasks that Chinese AI startup DeepSeek claims to perform with advanced chips with competitors such as U.S.-based OpenAI.
CEO Jensen Huang shrugged Wednesday and said in a statement that demand for NVIDIA’s latest generation of Blackwell Chips is “amazing”. Data center revenues have almost doubled as big tech companies quickly build AI products.
Still, Blackwell launch has encountered some initial hurdles, production issues, and reports on some iterations of chip overheating in servers.
Analysts were seeking assurance Wednesday that the transition from previous chip architectures will go smoothly, and demand for Blackwell will continue to outweigh supply this year.
Net income was $22.1 billion, an increase of 80% from the previous quarter. However, gross margin fell from 76% to 73%.
NVIDIA Chief Financial Officer Colette Kress pointed out that profit margins have fallen due to the transition to “more complex and higher cost” Blackwell Systems. Blackwell earned $11 billion in the quarter, she said.
NVIDIA shares rose 2% in after-hours trading in New York and rose nearly 4% during regular meetings.
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