NVIDIA Corp. (NASDAQ: NVDA) reported record-breaking financial results for its fourth quarter and fiscal year 2025 on Wednesday, driven by surging demand for its artificial intelligence (AI) and data center technologies. The chipmaker’s performance exceeded Wall Street expectations, with strong growth in its data center and AI-driven businesses.
Revenue for the fourth quarter, which ended on January 26, 2025, was $39.3 billion, up 12% from the previous quarter and 78% from a year ago.
For the quarter, GAAP earnings per diluted share were $0.89, up 14% from the previous quarter and 82% from a year ago. Non-GAAP earnings per diluted share were $0.89, up 10% from the previous quarter and 71% from a year ago.
For fiscal 2025, revenue reached $130.5 billion, marking a 114% increase from the previous year. GAAP earnings per diluted share were $2.94, up 147% from a year ago, while non-GAAP earnings per diluted share were $2.99, up 130% from a year ago.
“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,” said Jensen Huang, founder and CEO of NVIDIA.
“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.”
NVIDIA will pay its next quarterly cash dividend of $0.01 per share on April 2, 2025, to all shareholders of record as of March 12, 2025.
NVIDIA (NVDA) also reported fiscal Q4 non-GAAP net income of $0.89 per diluted share, up from $0.52 a year earlier.
Analysts polled by FactSet had, on average, expected $0.85.
Revenue for the quarter ended January 26 was $39.33 billion, compared with $22.10 billion a year earlier. Analysts had expected $38.10 billion.
For fiscal Q1, the chipmaker is projecting $43 billion in revenue, plus or minus 2%. Analysts are looking for $42.07 billion.
NVIDIA shares were down 0.3% in after-hours trading.
Financial Highlights
For Q4 FY2025, which ended on January 26, 2025, NVIDIA reported:
- Revenue: $39.3 billion (+78% YoY, +12% QoQ)
- GAAP earnings per share (EPS): $0.89 (+82% YoY, +14% QoQ)
- Non-GAAP EPS: $0.89 (+71% YoY, +10% QoQ)
For the full fiscal year 2025:
- Revenue: $130.5 billion (+114% YoY)
- GAAP EPS: $2.94 (+147% YoY)
- Non-GAAP EPS: $2.99 (+130% YoY)
NVIDIA’s results beat analyst expectations, with Q4 revenue exceeding estimates of $38.1 billion, and its Q1 FY2026 guidance coming in stronger than forecasted at $43 billion.
Key Growth Drivers
1. Data Center and AI Dominance
NVIDIA’s data center segment remains the company’s primary growth engine, generating $35.6 billion in Q4 revenue, a 93% year-over-year increase. The company continues to capitalize on the AI boom, with cloud providers like AWS, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure expanding their NVIDIA-powered infrastructure. The rise of generative AI and large language models (LLMs) has fueled demand for NVIDIA’s GPUs and AI systems, with enterprise AI adoption accelerating across industries.
NVIDIA’s Blackwell AI supercomputers have ramped up faster than expected, contributing significantly to Q4 sales. The company is also strengthening its presence in AI cloud services, partnering with major tech giants to integrate DGX Cloud AI computing and NVIDIA NIM™ microservices into their platforms.
2. Gaming and AI-Powered PCs
The gaming division generated $2.5 billion in Q4 revenue, down 11% year-over-year but showing resilience amid macroeconomic headwinds. NVIDIA’s launch of the GeForce RTX™ 50 Series, powered by the new Blackwell architecture, positions the company to regain momentum in gaming GPUs.
The introduction of RTX 5090 and 5080 GPUs, along with DLSS 4 AI-powered rendering, marks a significant leap in performance, further strengthening NVIDIA’s foothold in gaming and AI-powered PCs.
3. Automotive and Robotics
NVIDIA’s automotive business reported a revenue surge of 103% YoY, reaching $570 million in Q4. Partnerships with Toyota, Hyundai, and Uber highlight growing demand for AI-driven solutions in autonomous driving and industrial automation. The company’s NVIDIA DRIVE AGX Orin™ platform is becoming a critical component in next-generation electric and autonomous vehicles.
Investor Outlook: Can NVIDIA Sustain Its AI-Driven Growth?
NVIDIA’s impressive Q4 performance raises a key question for investors: How long can the AI-driven demand continue to fuel its exponential growth?
Bullish Case:
- AI Spending Continues to Scale – Enterprises and governments worldwide are investing heavily in AI infrastructure, with NVIDIA at the center of this trend.
- Blackwell Architecture & Future AI Advancements – The upcoming Blackwell AI supercomputers are expected to further solidify NVIDIA’s leadership.
- Expanding Cloud and Enterprise AI Business – New partnerships and product integrations point to sustained long-term demand.
- Strong Q1 FY2026 Guidance – NVIDIA’s forecast of $43 billion in revenue suggests another record-breaking quarter ahead.
Bearish Case:
- Valuation Concerns – NVIDIA’s stock trades at a high premium, and any slowdown in AI-related spending could trigger a correction.
- Competition Heating Up – AMD, Intel, and custom AI chipmakers like Google and Amazon are pushing aggressively into the AI hardware space.
- Geopolitical Risks – U.S.-China trade tensions could impact NVIDIA’s access to key markets.
Final Verdict: NVIDIA’s AI Leadership Justifies Its High Valuation
NVIDIA’s record-breaking financial results, coupled with its dominant position in AI and data centers, support its high stock valuation. While risks remain—such as increasing competition and geopolitical uncertainty—the company’s technological leadership and growing AI adoption suggest that its growth trajectory remains intact.
For long-term investors, NVIDIA remains a compelling play in the AI revolution. However, those concerned about valuation may consider waiting for a pullback before adding to their positions.
Stock Reaction: Despite the strong earnings report, NVIDIA’s stock dipped 0.3% in after-hours trading, likely due to profit-taking and broader market conditions. Investors should watch for post-earnings volatility before making new investment decisions.
Looking Ahead: What to Watch in Q1 FY2026
- AI Infrastructure Spending Trends – Continued investments from cloud providers will be a key indicator of sustained demand.
- New Blackwell AI Product Launches – Any updates on NVIDIA’s next-gen AI hardware could drive further growth.
- Competitive Landscape – Investors should monitor AMD, Intel, and cloud providers’ custom AI chips as potential threats to NVIDIA’s dominance.
- Macroeconomic Factors – Interest rate movements and global economic trends could impact tech stock valuations.
NVIDIA’s next earnings call is expected in May 2025, providing further insights into its trajectory in the rapidly evolving AI landscape.