Nvidia Powers Ahead with Record Revenue Amid AI Surge and Strategic Partnerships

Nvidia's latest financial results have garnered significant attention amid the ongoing interest in computing power and its role in AI advancements. The company's fiscal year 2025 Q4 report disclosed an impressive quarterly revenue of $39.3 billion, marking a 78% increase compared to the previous year. For the full fiscal year, Nvidia's revenue reached $130.5 billion, a 114% rise year-over-year.

Jensen Huang, founder and CEO of Nvidia, highlighted the "astonishing" demand for the company's new Blackwell products. He attributes this to the evolving landscape of artificial intelligence, where more sophisticated AI models demand greater computational capabilities, particularly for training and inference processes.

Despite the remarkable year-on-year growth, Nvidia's quarterly revenue growth decelerated. The Q4 revenue growth of 78% is a slowdown from the previous quarter's 94% increase. However, the company managed to achieve a Q4 net profit of $22.091 billion, 80% higher than the prior year.

Nvidia's forecast for Q1 of fiscal year 2026 suggests revenues between $42 billion and $44 billion. As the company prepares to dispense its next quarterly cash dividend of $0.01 per share on April 2, 2025, its data center segment continues to perform robustly, with Q4 revenue achieving a record $35.6 billion - a 93% increase from the previous year.

In contrast, Nvidia's gaming revenue experienced a downturn, decreasing by 22% sequentially and 11% year-over-year to $2.5 billion. Despite this, automotive and robotic sectors showed a strong upward trajectory, with automobile revenues expanding by 27% compared to the previous quarter and by 103% year-on-year.

The ongoing U.S. export restrictions on chips impacted Nvidia's sales in China, leaving its contribution to overall revenue minimal. Nonetheless, Nvidia remains optimistic about its position in the U.S. data center market, where it holds a leading share.

Nvidia has been selected as a key technology partner in the $500 billion Stargate Project, tasked with constructing infrastructure for next-generation AI. Alongside partners such as Oracle, Nvidia will facilitate the creation of AI-driven systems with an initial investment of $100 billion.

The company has also revealed partnerships with major cloud service providers including Amazon Web Services, CoreWeave, Google Cloud Platform, Microsoft Azure, and Oracle Cloud Infrastructure to roll out Nvidia® GB200 systems globally, catering to the burgeoning demand for AI capabilities. The GB200, part of Nvidia's Blackwell series, has seen sales in the billions during its inaugural quarter.

Huang, addressing concerns over the potential impact of competitors' chip architectures, emphasized the comprehensive ecosystem built around Nvidia’s GPU architecture. This ecosystem's compatibility and adaptability to diverse AI models underline the GPUs’ essential role in modern AI workflows.

Amid speculation that the low-cost, high-performance DeepSeek model might reduce dependency on high-end Nvidia chips, Huang noted that such innovations would instead spur the need for higher-performance AI solutions, benefiting Nvidia's long-term market position. Reports of increased orders for Nvidia's H20 chips from China further underscore its dominance, especially following U.S. export restrictions on chip technology.