Nvidia sharply increased sales in the fourth quarter due to demand for AI chips
Kyiv • UNN
Nvidia reported revenue of $39.3 billion in the fourth quarter, up 78% year-on-year. The company expects further sales growth to reach $43 billion in the first quarter of fiscal 2026.
Nvidia on Wednesday reported a sharp rise in profits and sales in the fourth quarter, as demand for its specialized Blackwell chips that power artificial intelligence systems continued to grow, leading to a rise in the company's shares after the close of trading, UNN reports with reference to AP.
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For the three months ended January 26, the Santa Clara, California-based tech giant reported revenue of $39.3 billion, up 12% from the previous quarter and 78% from a year ago. Including one-time expenses, the profit amounted to 89 cents per share.
"The demand for Blackwell is incredible as artificial intelligence adds another law of scaling - increasing computation for learning makes models smarter, and increasing computation for long-term thinking makes the answer smarter," said Nvidia founder Jensen Huang in a statement.
Nvidia has increased large-scale production of Blackwell AI supercomputers, Huang said, "reaching billions of dollars in sales in the first quarter.
"Artificial intelligence is advancing at the speed of light, as agent and physical artificial intelligence lay the groundwork for the next wave of artificial intelligence that will revolutionize major industries," he said.
Wednesday's earnings report exceeded Wall Street expectations. Analysts expected adjusted earnings of 85 cents per share on revenue of $38.1 billion, according to FactSet. Nvidia reported a net profit of $22.06 billion in the fourth quarter, exceeding analysts' forecasts of $19.57 billion. The tech giant expects sales to continue to grow, forecasting a profit of about $43 billion for the first quarter of fiscal 2026.
Sales of data centers, which account for the majority of Nvidia's revenue, have been a major part of this rise, with fourth-quarter revenue of $35.6 billion, up 93% year-over-year.
The child of the AI boom, Nvidia has grown to become the second largest company on Wall Street - now worth more than $3 trillion - and its stock movements have a greater impact on the S&P 500 and other indices than any other company except Apple. Two years ago, Nvidia's market value was below $600 billion.
The fourth-quarter earnings report was the company's first since Chinese company DeepSeek boasted that it had developed a large language model that could compete with ChatGPT and other US competitors, but proved more cost-effective when using Nvidia chips to train the system on data sets.
The hype surrounding DeepSeek caused $595 billion of Nvidia's wealth to briefly disappear. But in a statement, the company praised DeepSeek's work as a "remarkable AI achievement" that used "widely available models and computations that are fully compliant with export controls.
Speaking to investors, Huang said that the "next wave" of AI will come with "agent AI for enterprises, physical AI for robotics, and sovereign AI, as different regions create their own AI for their own ecosystems.
"We are at the center of much of this development," Huang said.
