CEO Jensen Huang said AI is shifting toward ‘reasoning’ models that demand more computing power|CC BY-NC 4.0
Nvidia kept its upbeat streak alive. The chipmaker reported its quarterly earnings soared 78% compared to Q4 last year to $39.3 billion, with net income rising 80% to $22 billion, both exceeding Wall Street expectations.
It was the tech company’s first quarterly report since China’s DeepSeek debuted its open-source AI model that sent Nvidia’s stock plummeting ~17% in a single day.
Sales of its new Blackwell AI chips hit $11 billion, accounting for 28% of the revenue, while its data center revenue climbed 93% to $35.6 billion.
CEO Jensen Huang said AI is shifting toward “reasoning” models that demand more computing power.
Nvidia projects $43 billion in revenue this quarter, beating analyst estimates.
Despite record sales, Nvidia’s stock dipped in after-hours trading and is down 2% this year after soaring 800% over two years.
The earnings report has dissipated investors’ worry over competition from DeepSeek, but challenges like rising production costs, heavy investment in data centers for cloud computing by Amazon, Meta and Alphabet, and potential US export restrictions on AI chips to China are some of the concerns that plague the company.
Nvidia is rapidly scaling Blackwell production, supporting AI clusters with over 100,000 chips.