The Santa Clara-based company reported record-breaking revenue of $39.3 billion for Q4, reflecting a 12% increase from the previous quarter and a staggering 78% surge compared to the same period a year ago. For the full fiscal year, NVIDIA’s revenue soared to $130.5 billion, a remarkable 114% jump from fiscal 2024. These figures underscore NVIDIA’s pivotal role in the artificial intelligence (AI) revolution and its ability to capitalize on the growing demand for advanced computing solutions.

Fourth Quarter Highlights: Data Centers Drive Unprecedented Growth

The fourth quarter, spanning October 27, 2024, to January 26, 2025, showcased NVIDIA’s continued momentum, particularly in its Data Center segment. Revenue for the quarter reached $39.3 billion, exceeding Wall Street expectations, which had hovered around $38.2 billion according to analyst consensus.

Data Center:  This performance was propelled by a robust $35.6 billion in Data Center revenue, a 93% increase year-over-year and a 16% rise from the prior quarter. Full year revenue rose 142% to a record $115.2 billion. The Data Center business, which provides the GPUs critical for training and running large-scale AI models, has become the backbone of NVIDIA’s growth, cementing its position as the top supplier in the $158 billion global GPU market, where it holds an estimated 95% share according to Morgan Stanley analysts. Announced that NVIDIA will serve as a key technology partner for the $500 billion Stargate Project.  Revealed that more than 75% of the systems on the TOP500 list of the world’s most powerful supercomputers are powered by NVIDIA technologies. Despite the Data Center triumph, not all segments performed equally.

Gaming and AI PC:  Gaming revenue, which includes graphics processors for consumer PCs, for the Fourth quarter Gaming revenue was $2.5 billion, down 22% from the previous quarter and down 11% from a year ago. Full year revenue rose 9% to $11.4 billion. This decline reflects a shift in focus toward AI-driven products, though NVIDIA did introduce new Blackwell-architecture-based gaming cards during the quarter.

Others:  Automotive and Robotics Sector revenue for the Fourth quarter was $570 million, up 27% from the previous quarter and up 103% from a year ago. Full year revenue rose 55% to $1.7%. Signalling growing traction in autonomous driving technologies.

Professional Visualization Sector revenue for the Fourth quarter was $511 million, up 5% from the previous quarter and up 10% from a year ago. Full year revenue rose 21% to $1.9%.

Earnings per diluted share (EPS) further highlighted NVIDIA’s profitability. On a GAAP basis, EPS reached $0.89, up 14% from the previous quarter and 82% from a year ago. Non-GAAP EPS also hit $0.89, reflecting a 10% sequential increase and a 71% year-over-year gain.

Net income for the quarter stood at $22.1 billion, an 80% jump from Q4 of fiscal 2024, and sequential increase of 14% on QoQ basis.

Free cash flow came in at $15.5 billion, though it saw a slight 7.6% decline from the prior quarter due to increased capital expenditures and share repurchasing activities.

KEY HIGHLIGHTS

• Record quarterly revenue of $39.3 billion, up 12% from Q3 and up 78% from a year ago
• Record quarterly Data Center revenue of $35.6 billion, up 16% from Q3 and up 93% from a year ago
• Record full-year revenue of $130.5 billion, up 114%

Fiscal 2025: A Record-Breaking Year

For the full fiscal year 2025, NVIDIA’s revenue reached an unprecedented $130.5 billion, more than doubling the $61 billion recorded in fiscal 2024. This 114% growth was driven by unrelenting demand for AI infrastructure across industries, with hyperscalers like Meta, Alphabet, and Amazon ramping up capital expenditures—projected at $65 billion, $75 billion, and over $100 billion respectively for 2025—to build out AI data centers powered by NVIDIA’s technology.
 

Operating income for the year soared 147% to $81.5 billion, while Net income climbed 145% to $72.9 billion. Diluted EPS for the fiscal year hit $2.94, a 147% increase from $1.18 in fiscal 2024. Gross margins remained strong at 75.0%, up 2.3 percentage points from the prior year, reflecting NVIDIA’s ability to maintain profitability amid rapid scaling. The company also returned significant value to shareholders, spending $33.7 billion on share repurchases throughout the year and maintaining its quarterly dividend at $0.01 per share, with the next payout scheduled for April 2, 2025.

Strategic Moves and Blackwell’s Impact

A key highlight of Q4 was the ramp-up of NVIDIA’s next-generation Blackwell AI supercomputers. CEO Jensen Juang, founder and CEO of NVIDIA said, “Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter.”

“We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries.”

The Blackwell platform, which began shipping in Q4, is expected to continue driving revenue into fiscal 2026, with production yields improved following a mask change earlier in the year. Analysts estimate that Blackwell GPU volumes could reach 150,000 to 200,000 units in Q4, tripling to 550,000 in Q1 of fiscal 2026, further solidifying NVIDIA’s lead in the AI hardware race.

The company’s outlook for the first quarter of fiscal 2026 reflects this optimism, projecting revenue of $43 billion, plus or minus 2%. This guidance suggests that NVIDIA anticipates sustained demand for both its Hopper and Blackwell architectures, despite earlier concerns about supply constraints and competition from China’s DeepSeek AI model, which triggered a $600 billion market cap drop for NVIDIA in late January 2025.

Challenges and Market Dynamics

While NVIDIA’s growth trajectory remains impressive, the Q4 results also revealed signs of slowing momentum compared to previous quarters. Revenue growth of 78% year-over-year in Q4, though substantial, pales in comparison to the triple-digit increases seen in fiscal 2024, such as the 206% surge in Q4 of that year. This deceleration, coupled with the gaming segment’s underperformance, has raised questions about whether NVIDIA can maintain its torrid pace as it scales into a larger enterprise.

External pressures also loom. The emergence of DeepSeek’s less tech-intensive AI model has sparked debate about long-term demand for NVIDIA’s high-end GPUs, though increased inference workloads and hyperscaler spending have mitigated these concerns for now. Additionally, potential U.S. export controls and tariffs could impact NVIDIA’s ability to serve markets like China, a factor investors will monitor closely in the coming quarters.

Investor Sentiment and Stock Performance

Following the Q4 earnings release on February 26, 2025, NVIDIA’s stock reaction was mixed, with an initial dip of 1.2% in after-hours trading which recovered and now trading in the positive, reflecting some investor disappointment over the gaming segment and the slower growth rate whereas other investor are happy with the growth rate. However, the beat on revenue and EPS, combined with strong guidance, has bolstered confidence among analysts, with 17 out of 18 maintaining “buy” ratings as of February 20, 2025. The company’s forward P/E ratio of 29.2 based on fiscal 2026 EPS projections of $4.44 suggests that NVIDIA remains attractively valued relative to its historical average of 59.2, offering potential upside for long-term investors.

Looking Ahead and Outlook

NVIDIA’s fiscal 2025 results cap off a transformative year, positioning the company as the undisputed leader in the AI-driven computing era. With Blackwell production ramping up and hyperscalers doubling down on AI infrastructure, NVIDIA appears well-poised to sustain its growth into 2026. However, challenges in diversifying beyond its Data Center reliance and navigating geopolitical headwinds will test its resilience. As Jensen Huang’s vision of an “age of AI in full steam” continues to unfold, NVIDIA remains a bellwether for the tech industry—and a focal point for investors worldwide.

NVIDIA’s outlook for the first quarter of fiscal 2026 is as follows:

• Revenue is expected to be $43.0 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins are expected to be 70.6% and 71.0%, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses are expected to be approximately $5.2 billion and $3.6 billion, respectively.
• GAAP and non-GAAP other income and expense are expected to be an income of approximately $400 million, excluding gains and losses from non-marketable and publicly-held equity securities.
• GAAP and non-GAAP tax rates are expected to be 17.0%, plus or minus 1%, excluding any discrete items.

For more details, refer to the official press release on NVIDIA’s Newsroom: NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2025.