Nvidia Surpasses Forecasts, Lifts Outlook on Strong AI Growth

TLDR

• Nvidia reported $68.1 billion in fourth quarter revenue, up 73% from a year earlier.
• The company posted adjusted earnings per share of $1.62, beating estimates of $1.54.
• Nvidia projected first-quarter revenue of about $78 billion, above forecasts of $72.9 billion.
• Data Center revenue reached a record $62.3 billion, rising 75% year over year.
• CFO Colette Kress said Nvidia scaled its data center business nearly 13x since ChatGPT emerged.
• CEO Jensen Huang said AI is here and will only get better from this point forward.

Nvidia reported fourth-quarter results that exceeded Wall Street expectations and lifted its shares in after-hours trading. The company posted strong revenue growth and issued first-quarter guidance above analyst forecasts. Chief Executive Jensen Huang said, “AI is here. AI is not going to go back.”

The chipmaker reported revenue of $68.1 billion, which marked a 73% increase from a year earlier. Analysts expected about $66.1 billion in revenue, according to FactSet data. Nvidia also reported adjusted earnings per share of $1.62, and that exceeded estimates of $1.54.

Shares rose as much as 4% in post-market trading after the release. The stock later trimmed gains and traded about 1% higher in after-hours activity. However, investors turned their focus to forward guidance.

Nvidia Data Center Revenue Hits Record as Guidance Tops Forecasts

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

CFO Colette Kress said, “We have now scaled our data center business by nearly 13x since the emergence of ChatGPT.” She added that Nvidia secured inventory and supply commitments that extend into 2027. Meanwhile, Nvidia expects first-quarter revenue of about $78 billion, above analyst estimates of $72.9 billion.

Thomas Monteiro, senior analyst at Investing.com, addressed growth concerns during the release. He said, “Today’s report is a strong pushback against the narrative that hyperscaler AI growth could start fading into 2027.” He added that the 75% surge in data center revenue shows infrastructure deployment remains in expansion mode.

Jensen Huang reinforced the outlook during the earnings call. He said the amount of computation demand in the past was “a tiny fraction” of future needs. He added, “AI is only going to get better from here.”

Crypto Stocks Rise as Bitcoin, Bittensor (TAO), and Internet Computer (ICP) Gain

Bitcoin traded near $69,000 following a 10% rally from Tuesday’s lows. The cryptocurrency held steady after Nvidia released its earnings report. However, prices trimmed earlier intraday gains.

Bittensor (TAO) extended gains after the earnings announcement. Internet Computer (ICP) also moved higher during the same period. Both tokens later reduced some of their advances.

Crypto miners tracked Nvidia’s move in after-hours trading. IREN (IREN), Cipher Digital (CIFR), and TeraWulf (WULF) rose between 1% and 2%. However, those stocks later gave up their gains.

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

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