Nvidia posted a significant surge in fourth-quarter profit and revenue on Wednesday, driven by strong demand for its advanced Blackwell AI chips. The company’s stock climbed in after-hours trading following the earnings announcement.
For the quarter ending January 26, Nvidia reported a record-breaking revenue of $39.3 billion (£31 billion), reflecting a 12% increase from the previous quarter and a 78% jump year-over-year. Net income soared to $22.06 billion (£17.4 billion), surpassing Wall Street estimates.
CEO Jensen Huang highlighted the growing role of AI, emphasizing that Blackwell-powered computing is driving innovation. “AI is advancing at light speed, setting the stage for the next wave of transformation across major industries,” he stated. Huang also confirmed that Nvidia had achieved billions in Blackwell sales in its first quarter of production, marking the fastest product ramp in company history.
Nvidia’s data center business, a key revenue driver, generated $35.6 billion (£28 billion) in Q4, marking a 93% year-over-year increase. The company expects continued growth, forecasting $43 billion (£33 billion) in revenue for the first quarter of fiscal 2026.
The chipmaker is also playing a role in the $500 billion (£394.8 billion) AI infrastructure investment project announced by OpenAI, Oracle, and SoftBank, which aims to expand data centers and energy generation for AI advancements.
Nvidia’s meteoric rise has made it the second-largest company on Wall Street, now valued at over $3 trillion (£2.37 trillion)—a massive leap from $600 billion (£474 billion) just two years ago. Its success has been a major force behind the S&P 500’s record-breaking performance in recent weeks.
However, concerns remain over geopolitical uncertainties, including potential tariffs under President Donald Trump’s administration. CFO Colette Kress noted that the company is awaiting further details on policy changes that could impact exports.
The earnings report comes amid rising competition, particularly from China’s DeepSeek, which recently introduced an AI model designed to compete with ChatGPT. While DeepSeek’s advancements briefly erased $595 billion (£474 billion) from Nvidia’s market value, the company praised the innovation, stating that it aligns with global AI development trends.
Looking ahead, Huang expressed confidence in Nvidia’s position at the center of AI’s next evolution, highlighting agentic AI for enterprises, physical AI for robotics, and sovereign AI for national ecosystems as key areas of future growth.
With demand for AI computing accelerating, Nvidia’s record-setting quarter reinforces its dominance in the rapidly expanding tech landscape.
