Nvidia has released its fourth-quarter report, which significantly exceeded analysts' expectations. Revenue in the company's key data center segment surged by 75%.

Key results:

  • earnings per share: $1.62 versus a forecast of $1.53;
  • revenue: $68.13 billion compared to expected $66.21 billion.

The company's total revenue rose by 73% from $39.3 billion a year earlier. Over 91% of sales come from the data center division, which focuses on its flagship AI chips.

Net income nearly doubled to $43 billion from $22.1 billion in the previous reporting period.

The results also surpassed analysts' expectations. The company anticipates revenue of $78 billion in the first financial quarter, while experts had projected $72.6 billion. Notably, the forecast does not include revenue from data centers in China.

Nvidia's stock is outperforming the broader market, having risen 5% since the beginning of the year, while the Nasdaq index has declined by 0.4%.

Expectations for Nvidia's financial report were shaped weeks ago following the results from Alphabet, Amazon, Meta, and Microsoft. Based on their forecasts and analysts' assessments, total capital expenditures for the year could approach $700 billion as tech giants develop their own AI infrastructure.

Nvidia's CFO Colette Kress stated that hyperscalers remain the company's largest clients, accounting for over 50% of revenue in the data center segment.

Potential Risks

A major challenge for Nvidia is the memory shortage. Kress noted that supply constraints will hinder the growth of the gaming business "in the first quarter of the 2027 financial year and beyond."

Interest is growing in next-generation computing systems Vera Rubin. Initial samples have already been delivered to clients, with mass production expected in the second half of the year.

The new chips are expected to increase performance per watt tenfold, which is particularly important given the energy constraints of data centers.

Nvidia also announced the expansion of its supply chains beyond Asia to the U.S. and Latin America. It is producing Blackwell at TSMC factories in Arizona, with some systems assembled at a new large Foxconn plant in Mexico.

Anthropic's Conflict with the U.S. Military

Nvidia CEO Jensen Huang commented on the disagreements between the U.S. Department of Defense and Anthropic, stating that "this is not the end of the world."

He noted that the Pentagon has every right to manage the technologies it has purchased. However, Anthropic can establish its own policies for the use of its products.

"Both sides have a reasonable position," Huang said.

He emphasized that even if negotiations fail, there will be no critical consequences:

"Anthropic is not the only AI company in the world, and the Department of Defense is not the only client."

Scenario of Economic Collapse

Huang also commented on a report from Citrini Research, which described a scenario of economic collapse due to artificial intelligence.

This document partly triggered a sell-off of stocks in software developers and payment services.

"I think the markets are mistaken," he said.

In his view, companies will use AI agents to create new products and enhance efficiency. Virtual assistants will not replace software but will utilize it.

"All the tools we use today—Cadence, Synopsys, ServiceNow, or SAP—exist for fundamentally sound reasons. AI agents will become intelligent software that uses these services on our behalf and helps us be more productive," Huang stated.

It is worth noting that in January, the administration of former U.S. President Donald Trump officially allowed the export of Nvidia's H200 AI chips to China, the second most powerful solutions in the company's lineup.