Nvidia has achieved remarkable financial milestones, driven by the burgeoning demand for artificial intelligence (AI) technology. The company reported a record annual revenue of $130.5 billion and a net profit of $72.9 billion, significantly surpassing competitors like AMD. Central to this success are Nvidia's AI accelerators, which have become the primary revenue contributors, despite a downturn in graphics card sales due to supply shortages of Blackwell and Ada GPUs.
Investments in research and development reached $12.9 billion, showcasing Nvidia's commitment to innovation. Despite a slight decline in net margins, the company's financial outlook remains positive. Earnings from Mellanox network products and the virtualization and automotive sectors remain relatively modest. Nvidia is also engaging in share buybacks, indicating confidence in its future performance.
The AI chipmaker's impressive growth is fueled by significant investments from tech giants such as Amazon, Meta, Alphabet, and Microsoft in data center AI infrastructure. The company's data center business witnessed a substantial increase in revenue, emphasizing the strong market demand for AI-focused hardware. Nvidia's stock has experienced significant gains, reflecting its market dominance and investor confidence.
Despite challenges posed by competitors like the Chinese AI program DeepSeek, Nvidia continues to lead the AI chip industry with innovative solutions like the Blackwell processing unit. As Nvidia projects further revenue growth in upcoming quarters, it solidifies its position as the world's second-most-valuable public company, trailing only Apple. With AI progressing rapidly, Nvidia remains at the forefront, driving technological advancements at an unprecedented pace.
