NVIDIA Stock: A Must-Own Investment in the AI Revolution

NVIDIA's recent earnings report for the fourth quarter of fiscal 2025 has once again underscored why the company's stock remains a must-own investment. The tech giant reported a staggering $39.3 billion in revenue, marking a 12% increase from the previous quarter and a 78% surge from the same period last year. This remarkable growth is a testament to the company's dominance in the AI and data center markets, where demand for high-performance computing solutions continues to soar.



The financial metrics speak for themselves. NVIDIA's GAAP earnings per diluted share for the quarter were $0.89, up 14% from the previous quarter and 82% from a year ago. Non-GAAP earnings per diluted share also stood at $0.89, reflecting a 10% quarterly increase and a 71% year-over-year growth. For the full fiscal year 2025, revenue soared to $130.5 billion, up 114% from the previous year, with GAAP earnings per diluted share at $2.94 and non-GAAP earnings per diluted share at $2.99, both showing impressive year-over-year growth of 147% and 130%, respectively.



But the numbers only tell part of the story. NVIDIA's strategic positioning in the AI and data center markets is what truly sets it apart. The company has successfully ramped up the production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. This is a clear indication of the insatiable demand for AI infrastructure, which is a key driver of NVIDIA's growth. As Jensen Huang, NVIDIA's founder and CEO, put it, "Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter."

NVIDIA's partnerships with major cloud service providers like AWS, Google Cloud Platform, Microsoft Azure, and Oracle Cloud Infrastructure further cement its leadership in the AI space. These collaborations ensure that NVIDIA's technology is integrated into the infrastructure of leading cloud providers, meeting the surging customer demand for AI. Additionally, NVIDIA's involvement in the $500 billion Stargate Project and its collaboration with industry leaders in genomics, drug discovery, and healthcare highlight its strategic positioning in high-growth sectors.

The company's product innovations are equally impressive. The launch of the NVIDIA AI Blueprints and Llama Nemotron model series, along with the NVIDIA NIM microservices, provides developers with the tools to build advanced AI agents. These innovations are designed to enhance AI capabilities and drive the next wave of AI applications, positioning NVIDIA at the forefront of the AI revolution.

NVIDIA's financial performance in the data center segment is equally robust. Fourth-quarter revenue reached a record $35.6 billion, up 16% from the previous quarter and 93% from a year ago. Full-year revenue rose 142% to a record $115.2 billion. This financial strength underscores the company's ability to capitalize on the growing demand for AI and data center solutions.

In conclusion, NVIDIA's strategic positioning in the AI and data center markets, supported by its partnerships with leading technology companies and its innovative product launches, positions the company for sustained long-term growth. This, in turn, enhances its investment appeal by demonstrating its ability to lead in high-growth sectors and deliver strong financial performance. For investors looking to capitalize on the AI revolution, NVIDIA stock remains a must-own investment.