Nvidia Achieves Record Revenue of $39.3 Billion Thanks to AI Chips

Nvidia has once again made an impression with a record revenue of $39.3 billion in the fourth quarter, an increase of 12% compared to the previous quarter and a whopping 78% compared to a year ago. The demand for artificial intelligence (AI) chips continues to drive this growth.

Strong Figures

According to TipRanks, Nvidia exceeded expectations with a diluted earnings per share of $0.89, where analysts had predicted $0.84. This represents an increase of 14% quarter-on-quarter and 82% year-on-year. The company has consistently performed above expectations over the past few years, and this time was no exception.

The shares responded positively: they closed 3.67% higher at $131.28 and climbed another 2.32% to $134.33 in after-hours trading. Investors are clearly excited about Nvidia’s performance.

Data Centers Lead the Growth

The data center division, Nvidia’s largest segment, brought in revenue of $35.6 billion, an increase of 16% compared to the previous quarter and almost a doubling compared to last year. The Blackwell AI chips play a key role in this, driven by a huge demand from companies wanting to scale up their AI capabilities. CEO Jensen Huang underscored this success:

“Nvidia is scaling AI computing at an unprecedented rate. The demand for Blackwell is enormous, as companies are craving more AI reasoning and processing power.”

Annual Figures and Outlook

Over the entire fiscal year, revenue doubled to $130.5 billion, while net income increased by 145% to $72.9 billion. For the first quarter of 2026, Nvidia expects revenue of $43 billion, which is in line with Wall Street expectations, although some optimists had hoped for more. The gross margin is estimated at 70.6% (GAAP) and 71.0% (non-GAAP), meaning that Nvidia retains about 71 cents profit per dollar sold after production costs.

Challenges on the Horizon

Despite these strong results, there are concerns. Some analysts point to potential supply issues and increasing competition as risks to Nvidia’s dominant position in AI hardware.

The broader market also showed mixed signals. The S&P 500 rose slightly by 0.81 points (<0.1%), breaking a four-day losing streak. The Dow Jones fell by 188.04 points (0.4%), while the Nasdaq Composite gained 48.88 points (0.3%). After closing, Dow futures remained stable, with small increases for S&P 500 and Nasdaq futures.

Nvidia remains a powerhouse in the tech sector, but the road ahead will not be without bumps. For now, the AI wave seems to keep the company firmly on the rise.