Nvidia has reported record annual revenue of $215.9 billion, beating forecasts and posting a 73% jump in sales for the final quarter of its financial year, even as investors question the scale and durability of spending on artificial intelligence technology. The company said demand for computing continues to rise, while it also outlined new products and plans that could widen its role in AI hardware and services.
Financial Results And Market Position
The chipmaker said annual revenue reached $215.9 billion (£159.1 billion). Sales for the last three months of the financial year increased by 73% compared with the same period a year earlier, beating analysts’ expectations. Nvidia is the world’s most valuable publicly traded company, with a stock market value of around $4.8 trillion.
Chief executive Jensen Huang said, “Computing demand is growing exponentially. Our customers are racing to invest in AI compute, the factories powering the AI industrial revolution and their future growth.” Nvidia supplies chips across the AI sector and has become a central provider of infrastructure to companies building large models, including OpenAI and Meta.
Gene Munster, managing partner at Deepwater Asset Management, said the buildout of AI infrastructure is likely to continue for a long time. “AI is accelerating faster than people not using these tools can grasp,” he wrote on the social media platform X on Wednesday.
Investor Concerns And China Exposure
Nvidia has faced scrutiny from investors who are concerned about its expanding network of deals with other companies. Some critics have raised concerns about what they describe as “circular financing,” where Nvidia’s investments in other firms could affect how demand for AI hardware is perceived.
The company is also operating amid tensions between the United States and China. The outlook Nvidia released on Wednesday did not include expectations for chip revenue in China. Last month, the Trump administration began allowing Nvidia to sell its H200 chips, its second most advanced product, to Chinese customers under certain conditions. This week, a US Commerce Department official told lawmakers that none of those chips have yet been sold to customers in China.
New Products And Expansion Plans
Nvidia has outlined plans to expand its own product line to play a larger role in the physical products that use AI. Last month at the CES technology trade show in Las Vegas, Huang introduced a new technology platform for self-driving cars. He said the open-source AI model, which the company calls “Alpamayo,” is designed to bring reasoning capabilities to autonomous vehicles.
The company also said it plans to launch a robotaxi service by next year in partnership with an unnamed company.
Competition And The Groq Acquisition
Nvidia chips continue to lead in training large AI models, but the company has faced growing competition in inference, the stage where trained models are applied to real-world data to produce answers through reasoning. During the fourth quarter, Nvidia acquired rival Groq in a $20 billion deal to expand its expertise in inference.
Featured image credits: Roboflow Universe
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