Chip giant Nvidia defies AI concerns with record $215bn revenue

Source: BBC Technology

Nvidia boss Jensen Huang

Chip giant Nvidia has reported record annual revenue of $215.9 bn (£159.1 bn), beating analyst forecasts as sales for the last three months of its financial year jumped 73 % year‑on‑year.

“Computing demand is growing exponentially. Our customers are racing to invest in AI compute – the factories powering the AI industrial revolution and their future growth.” – Jensen Huang

Financial performance

• Record revenue: $215.9 bn for the fiscal year.
• Q4 sales increased 73 % compared with the same period a year earlier.
• Nvidia’s market capitalization is around $4.8 tn, making it the world’s most valuable publicly‑traded company.

AI market position

• Supplies chips to leading AI model developers, including OpenAI and Meta.
• Gene Munster, managing partner at Deepwater Asset Management, noted that AI build‑out “is accelerating faster than people not using these tools can grasp.” (Posted on X, Wednesday).
• Critics warn of “circular financing” deals that could obscure the true robustness of AI demand.

Geopolitical context

• Nvidia’s outlook omitted expectations for chip revenue in China.
• The U.S. administration recently allowed sales of the H200 chip (Nvidia’s second‑most advanced type) to Chinese customers under specific conditions, but a U.S. Commerce Department official reported that none have been sold yet.

Product expansion

• At CES in Las Vegas, Huang unveiled a new platform for self‑driving cars.
• The open‑source AI model, dubbed “Alpamayo,” aims to bring reasoning capabilities to autonomous vehicles.
• Nvidia plans to launch a robotaxi service next year in partnership with an unnamed collaborator.
• The company is strengthening its inference capabilities after acquiring rival Groq for $20 bn during Q4.

Nvidia continues to dominate AI training chips while expanding its footprint in inference and autonomous‑vehicle technologies.