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Nvidia closed in 2024 and surpassed Wall Street expectations as it achieved incredible sales and profit growth. Much of Silicon Valley may be sighing at what the results of the artificial intelligence industry say.
Chipmaking Giant shares reached just over 1% in Wednesday trading, shortly after it released its revenue report for the quarterly ended in January and ended in fiscal year 2025. However, the stock quickly became positive, increasing 2.7% within 30 minutes of the report’s release.
Nvidia won $39.3 billion in sales in the January quarter. This was slightly above Wall Street expectations, 78% higher than the same period last year. Quarterly profits rose 72% year-on-year to $22 billion.
Over the course of a year, the company’s profits more than doubled to $74.3 billion, earning the banner year that Nvidia has stolen as perhaps the most important player in the growing AI industry.
And Nvidia expects its growth to continue. The company said it expects to see $43 billion in the current quarter, up 65% year-on-year to $43 billion, surpassing analysts’ expectations.
The results highlight that despite increasing competition, NVIDIA cannot compare to the production of chips used by many companies that power AI systems. Expectations have risen towards Wednesday’s report given Nvidia’s role as a barometer for the broader tech sector, facing tough investors’ questions about AI spending. Stocks in fellow tech giants Google, Meta, Microsoft, Amazon and Meta all traded higher operating hours following Nvidia’s report.
Over the past few weeks, Silicon Valley has been handling the launch of Deepseek, a tool for the American AI industry (a highly capable but efficient AI model from a Chinese startup a year ago).
Some industry experts have suggested that the launch of power-hungry rivals could add to the existing fears that US tech giants are spending on AI infrastructure without sufficient returns for their investments. Given the company’s central role in providing many chips to run AI systems, its spending pullback could potentially collide with Nvidia’s revenue.
Nvidia’s stock has fallen 5% since its launch this year as investors digest Deepseek News, but its shares have risen 65% from a year ago.
And as Nvidia’s stocks move forward, much of the rest of the tech market tends to continue. The Tech Heavy Nasdaq Composite Index has been down 1% since its launch this year, and has been reduced by weaker tech stock performance.
“Nvidia is a very important flooring and market darling inventory for the broader market,” Chris Brigati, chief investment officer of investment firm SWBC, said in an emailed commentary ahead of Nvidia’s report.
Still, analysts quickly pointed out that despite questions raised by Deepseek, major AI players announced plans to keep tens of millions of dollars concentrated on infrastructure. Also, some experts say pushing to more efficient and cheaper AI models is actually a boon for Nvidia and other AI players by accelerating the adoption of technology.
Wedbush analyst Dan Ives said he expects capital expenditures of $325 billion this year from “magnificent seven” tech companies from Microsoft, Amazon, Meta, Apple, Alphabet, Nvidia and Tesla.
“Depseek situations have not slowed down or changed the deployment of AI Enterprise,” Ives explained in an email Tuesday. “As explained for Nvidia’s next Gen chip, no customers want to “lose and lose their place.” ”
Despite some early challenges in rolling out DeepSeek and Nvidia’s new Blackwell chips, “Nvidia’s results continue to guide the AI landscape and reaffirm that they are on the sidelines of skeptics,” Emarketer technology analyst Jacob Bourne said on Wednesday. He added that investments from tech giants “indicating sustained demand for Nvidia’s hardware.”
Asked on Wednesday in a call with analysts about his expectations for future AI growth, Nvidia CEO Jensen Huang set a vision for a future where AI has permeated many areas of living. He pointed to the automotive industry as an example, saying that employees will use AI agents to work more productively, but that AI will also be injected into the vehicle itself.
“One day, we’ll have a billion cars on the roads and all of those cars will be robotic vehicles,” he said. “And they’re all collecting data and using AI factories to improve them.”
This story has been updated with additional development and context.
