Nvidia just dropped $33.7B on itself
Matt V
February 28, 2025
NVIDIA
Nvidia reported higher-than-expected earnings for the fourth quarter, with revenue reaching $39.33 billion, beating analyst estimates of $38.05 billion.
Earnings per share were $0.89, slightly above forecasts.
The company expects $43 billion in revenue for the next quarter, a 65% year-over-year increase, though slower than last year’s 262% growth.
Nvidia’s AI chips continue to drive most of its earnings, with its data center business now making up 91% of total sales, up from 60% in 2023.
The fourth quarter brought in $35.6 billion in data center revenue, a 93% annual increase, exceeding expectations.
However, the company’s overall growth is slowing as it gets bigger.
Big tech side eye
The latest Blackwell AI chips have seen record demand, with large cloud providers making up 50% of data center sales.
CEO Jensen Huang called Blackwell’s demand “amazing,” while CFO Colette Kress described it as Nvidia’s fastest-ever product launch.
Despite strong demand, Nvidia faces new challenges:
Rival AI chips from Amazon, Microsoft, and Google. Huang dismissed concerns, saying designing a chip doesn’t mean it will succeed.
More efficient AI models, like DeepSeek’s R1, might reduce demand for Nvidia chips. Kress argued that advanced AI reasoning could increase computing needs by up to 100 times.
Declining sales in networking and gaming, with networking down 9% and gaming revenue dropping 11% to $2.5 billion, missing forecasts.
Nvidia spent $33.7 billion on share buybacks in fiscal 2025, showing confidence in its long-term growth.
Competitors are cooking up their own AI chips. Nvidia’s response? “Nice try.”