Nvidia Surges with 78% Revenue Leap as Blackwell Chip Sparks Investor Optimism

Following the release of Nvidia's latest financial results for the fourth quarter of fiscal year 2025, investors were keenly attentive, particularly as the company unveiled promising insights into its new Blackwell chip. Despite the market disruption caused by the emergence of DeepSeek, a competitor that significantly lowered the cost of AI models, Nvidia's robust performance metrics managed to quell concerns about any detrimental effects on its revenues.

The semiconductor giant reported fourth-quarter revenue of $39.3 billion, marking an impressive 78% increase from the previous year. The data center segment significantly contributed to this growth, with a 93% year-on-year increase, bringing in $35.6 billion. Furthermore, the company's net profit rose by 80% to reach $22.09 billion, underscoring its financial resilience amid market challenges.

Despite these strong numbers, Nvidia's earnings per share, adjusted to $0.89, showed a 71% growth compared to the previous year, which some analysts suggest may not fully meet the heightened expectations that the market had set. The cautious optimism expressed by Nvidia's executives centers around the delivery of Blackwell chips, which accounted for $11 billion in the fourth quarter alone.

The outlook for Nvidia also remains optimistic, with a full-year revenue of $130.5 billion, growing by a substantial 114% from the previous fiscal year. For the first quarter of fiscal year 2026, Nvidia projects revenue in the range of $43 billion, subject to a 2% variance. This forecast suggests a steady trajectory that maintains investor interest and confidence.