TLDR

  • Nvidia reported a fourth-quarter revenue of $68.1 billion, which was a 73% increase from the previous year.
  • The company recorded adjusted earnings per share of $1.62, surpassing the estimated $1.54.
  • Nvidia predicted first-quarter revenue of approximately $78 billion, exceeding the forecasted $72.9 billion.
  • Data Center revenue hit a record high of $62.3 billion, jumping 75% year-on-year.
  • CFO Colette Kress stated that Nvidia had scaled its data center business nearly 13-fold since the emergence of ChatGPT.
  • CEO Jensen Huang stated that AI is here and will only improve from this point onward.

Nvidia reported fourth-quarter results that exceeded Wall Street’s expectations and caused its shares to rise in after-hours trading. The company experienced strong revenue growth and issued first-quarter guidance that was above analyst forecasts. The Chief Executive stated, “AI is here. AI is not going to reverse.”

The chipmaker reported revenue of $68.1 billion, representing a 73% increase from the previous year. According to FactSet data, analysts had expected around $66.1 billion in revenue. Nvidia also reported adjusted earnings per share of $1.62, which exceeded the estimated $1.54.

Shares increased by as much as 4% in post-market trading following the release. The stock later reduced its gains and traded about 1% higher in after-hours activity. However, investors shifted their focus to future guidance.

Nvidia Data Center Revenue Reaches Record as Guidance Exceeds Forecasts

Nvidia’s Data Center revenue for the quarter reached a record $62.3 billion. That figure rose 75% from the previous year and increased 22% from the prior quarter. The company attributed the growth to “major platform shifts – accelerated computing and AI.”

CFO Colette Kress stated, “We have now scaled our data center business by nearly 13 times since the emergence of [ChatGPT].” She also mentioned that Nvidia secured inventory and supply commitments extending into 2027. Meanwhile, Nvidia anticipates first-quarter revenue of approximately $78 billion, which is above the analyst estimate of $72.9 billion.

Thomas Monteiro, a senior analyst at Investing.com, addressed growth concerns during the release. He stated, “Today’s report strongly refutes the narrative that hyperscaler AI growth could start to wane by 2027.” He further noted that the 75% surge in data center revenue indicates that infrastructure deployment is still in an expansion phase.

Jensen Huang reinforced the outlook during the earnings call. He said that the amount of computation demand in the past was “a tiny fraction” of future requirements. He added, “AI is only going to improve from this point onward.”

Crypto Stocks Ascend as Bitcoin, Bittensor (TAO), and Internet Computer (ICP) Advance

Bitcoin traded around $69,000 after a 10% increase from Tuesday’s lows. The cryptocurrency remained stable after Nvidia released its earnings report. However, prices reduced their earlier intraday gains.

Bittensor (TAO) continued to rise after the earnings announcement. Internet Computer (ICP) also moved upward during the same period. Both tokens later decreased some of their gains.

Crypto miners followed Nvidia’s movement in after-hours trading. IREN (IREN), Cipher Digital (CIFR), and (WULF) increased by between 1% and 2%. However, those stocks later relinquished their gains.

Nvidia’s earnings release and guidance established the direction for the upcoming quarters. The company’s first-quarter revenue forecast of $78 billion exceeded market expectations. Shares remained approximately 1% higher in after-hours trading following the report.