Nvidia Stock Gains 3.7% as Revenue and Profit Beat Estimates, Blackwell Demand Surges

Nvidia's stock price surged 3.7% in regular trading on Wednesday, driven by stronger-than-expected fourth-quarter earnings and upbeat guidance. However, shares dipped 1.49% in after-hours trading due to volatility.

The Santa Clara-based tech giant reported a sharp increase in quarterly revenue and profit, fueled by surging demand for its advanced Blackwell AI chips. For the quarter ended January 26, Nvidia posted revenue of $39.3 billion, marking a 12% rise from the previous quarter and a staggering 78% increase year-over-year. The figure surpassed analysts' expectations of $38.04 billion.

Nvidia’s adjusted earnings per share stood at 89 cents, beating Wall Street estimates of 84 cents. Net income also exceeded forecasts, coming in at $22.06 billion against predictions of $19.57 billion.

Blackwell AI Chips Drive Record Sales

Founder and CEO Jensen Huang highlighted the rapid adoption of Blackwell AI supercomputers, stating that the company achieved "billions of dollars in sales in its first quarter" of availability.

The data-center segment, Nvidia’s largest revenue driver, surged 93% year-over-year to $35.6 billion, surpassing estimates of $33.59 billion. In the previous quarter, the segment had recorded even stronger growth of 112%.

Nvidia projects first-quarter revenue of $43 billion, plus or minus 2%, exceeding the consensus estimate of $41.78 billion. However, gross margin is expected to decline slightly to 71%, below Wall Street’s forecast of 72.2%.

CFO Colette Kress noted that Blackwell sales in Q4 surpassed expectations, contributing $11 billion in revenue—the fastest product ramp in Nvidia’s history. Cloud service providers accounted for roughly 50% of the data-center segment’s revenue.

Nvidia’s Market Performance

As the AI boom’s frontrunner, Nvidia has grown into the second-largest company on Wall Street, with a market capitalization surpassing $3 trillion—up from under $600 billion just two years ago.

Despite a 5% year-to-date decline, Nvidia’s stock has soared 66% over the past year and delivered an impressive 400% return in two years, reinforcing its position as a dominant force in the AI and semiconductor industry.