Current:Home > ScamsNvidia’s 4Q revenue, profit soar thanks to demand for its chips used for artificial intelligence -Capitatum
Nvidia’s 4Q revenue, profit soar thanks to demand for its chips used for artificial intelligence
View
Date:2025-04-14 23:47:26
SANTA CLARA, Calif. (AP) — Nvidia Corp., which has seen its value skyrocket over the past year thanks to soaring demand for its graphics chips used for artificial intelligence, posted stronger-than-expected results Wednesday for its latest quarter, with its revenue more than tripling from a year earlier.
Nvidia reported revenue for its fiscal fourth quarter that ended Jan. 28 of $22.1 billion, up from $6.05 billion.
The company based in Santa Clara, California, earned $12.29 billion, compared to a profit of $1.41 billion a year ago.
Adjusted for one-time items, Nvidia earned $5.16 a share in the latest quarter, that topped Wall Street forecasts for $4.59 per share, based on analysts surveyed by FactSet Research. Analysts had expected revenue of $20.4 billion for the period that concluded the company’s fiscal year.
The company’s specialized chips are key components that help power different forms of artificial intelligence, including the latest generative AI chatbots such as ChatGPT and Google’s Gemini.
“Accelerated computing and generative AI have hit the tipping point,” said Jensen Huang, founder and CEO of Nvidia, in a statement. “Demand is surging worldwide across companies, industries and nations.”
Nvidia carved out an early lead in the hardware and software needed to tailor its technology to AI applications, partly because Huang began to nudge the company into what was then seen as a still half-baked technology more than a decade ago. It also makes chips for gaming and cars.
Huang looked at ways that Nvidia chipsets known as graphics processing units might be tweaked for AI-related applications to expand beyond their early inroads in video gaming.
“Another blockbuster quarter from Nvidia raises the question of how long its soaring performance will last,” said Insider Intelligence analyst Jacob Bourne. “It has a massive lead in the growing global AI chip sector but can’t rest on its laurels.”
Bourne said Nvidia faces a number of challenges, including broader economic uncertainty, tech giants’ drive to make their own AI chips and emerging rivals. But he said the company’s market strength, for the near future, is “durable”
For the current quarter, Nvidia expects revenue of about $24 billion. Analysts are currently expecting Nvidia to post revenue of $22.2 billion for the February-April period.
Nvidia relies heavily on the world’s biggest maker of computer chips, the Taiwan Semiconductor Manufacturing Company, to churn out the chips that Nvidia designs.
Taiwan’s Taiex benchmark index last week jumped 3% to a record high, buoyed by a surge in TSMC’s share price.
The leap came after Morgan Stanley analysts raised their price target on Nvidia’s stock to $750 from $603, citing an increase in demand for AI chips.
Nvidia’s shares jumped 7.5%, to $726 in after-hours trading.
veryGood! (1)
Related
- Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
- Biden to observe 9/11 anniversary in Alaska, missing NYC, Virginia and Pennsylvania observances
- Elton John is 'in good health' after being hospitalized for fall at home
- Alaska report details 280 missing Indigenous people, including whether disappearances are suspicious
- The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
- The math problem: Kids are still behind. How can schools catch them up?
- Metallic spheres found on Pacific floor are interstellar in origin, Harvard professor finds
- 'The wrong home': South Carolina student fatally shot, killed outside neighbor's house
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Maine’s puffin colonies recovering in the face of climate change
Ranking
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- CBS New York speaks to 3 women who attended the famed March on Washington
- US Supreme Court Justice Barrett says she welcomes public scrutiny of court
- Clean Up Everyday Messes With a $99 Deal on a Shark Handheld Vacuum That’s Just 1.4 Pounds
- Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
- The Fate of The Idol Revealed Following Season One
- Get $30 off These Franco Sarto Lug Sole Loafers Just in Time for Fall
- No. 2 House Republican Steve Scalise is diagnosed with blood cancer and undergoing treatment
Recommendation
Could your smelly farts help science?
Republican lawyer, ex-university instructor stabbed to death in New Hampshire home, authorities say
NASCAR driver Ryan Preece released from hospital after terrifying crash
Travis Barker Honors DJ AM on 14th Anniversary of His Death
Person accused of accosting Rep. Nancy Mace at Capitol pleads not guilty to assault charge
Neurosurgeon investigating patient’s mystery symptoms plucks a worm from woman’s brain in Australia
HBCU president lauds students, officer for stopping Jacksonville killer before racist store attack
NHL offseason grades: Pittsburgh Penguins, Toronto Maple Leafs make the biggest news