WHAT A SMASH!! NVIDIA's Q4 Earnings Stun Tech World
With net income soaring to $22.1 billion and adjusted EPS at $0.89, NVIDIA not only crushed Wall Street’s forecasts but also solidified its reign as the undisputed leader in the AI revolution.
NVIDIA has once again stunned the tech world with its Q4 FY2025 earnings, unveiled on February 26, 2025, showcasing a financial performance that can only be described as blockbuster. The AI chip giant reported a staggering $39.3 billion in revenue for the quarter ending January 26, 2025—a 12% leap from the prior quarter and a jaw-dropping 78% surge from the same period last year. With net income soaring to $22.1 billion and adjusted earnings per share at $0.89, NVIDIA not only crushed Wall Street’s forecasts of $38.1 billion in revenue and $0.85 per share but also solidified its reign as the undisputed leader in the AI revolution.
The star of the show was NVIDIA’s data center business, which raked in $35.6 billion—91% of total revenue—driven by unrelenting demand for its AI-powered GPUs. This segment alone outpaced expectations of $33.5 billion, fueled by the explosive debut of the Blackwell architecture. CEO Jensen Huang hailed the $11 billion in Blackwell sales as “the fastest product ramp in our history,” a testament to the global frenzy for AI infrastructure. From hyperscalers like Microsoft Azure and Amazon Web Services to enterprises building “AI factories,” NVIDIA’s chips are the backbone of a trillion-dollar shift in computing, with data center revenue for the full year hitting $115.2 billion—more than double FY2024’s haul.
For the entire fiscal year 2025, NVIDIA’s revenue reached $130.5 billion, up 114% from the prior year, with GAAP earnings per diluted share climbing 147% to $2.94. The numbers reflect a company riding the crest of the AI wave, as industries from healthcare to automotive lean on NVIDIA’s Hopper and Blackwell platforms to power generative AI, robotics, and beyond. Huang underscored this momentum, noting that “AI is transforming every corner of the globe,” with Blackwell’s trillion-parameter capabilities setting a new benchmark for the industry.
Yet, the earnings weren’t without hiccups. Gross margins slipped to 73%, down from prior quarters, as the costly rollout of Blackwell took its toll. Investors, accustomed to triple-digit growth (like Q4 FY2024’s 265% year-over-year spike), greeted the report with a shrug—shares wavered post-announcement, reflecting concerns over a cooling growth rate and whispers of competition. China’s DeepSeek, for instance, has sparked chatter with claims of training competitive AI models with less compute power, potentially denting NVIDIA’s monopoly. Add to that looming US export restrictions, and some analysts see clouds on the horizon.
Still, NVIDIA’s outlook remains bullish. The company projected Q1 FY2026 revenue at $43 billion (plus or minus 2%), topping analyst estimates of $41.78 billion, signaling that the AI boom has legs. With tech giants like Meta ($65 billion) and Alphabet ($75 billion) slated to pour billions into AI infrastructure in 2025, NVIDIA’s 95% grip on the $158 billion GPU market looks unshakable—for now. As Huang put it, “The world is racing to build accelerated computing platforms, and we’re at the center of it.”
