Nvidia Posts Record Revenue as AI Spending Holds Firm
Nvidia has reported record annual revenue of $215.9bn (£159.1bn), easing concerns among some investors that heavy spending on artificial intelligence could be losing momentum.
The chipmaker said revenue for the final three months of its financial year surged 73% compared with the same period a year earlier, comfortably beating market expectations. The results underscore Nvidia’s continued dominance in supplying processors used to build and run advanced AI systems.
Chief executive Jensen Huang said demand for computing power continued to accelerate as companies race to expand their AI capabilities. He described the technology as the backbone of a new industrial shift, with customers investing heavily in the infrastructure needed to support future growth.
Nvidia is currently the world’s most valuable publicly listed company, with a market capitalisation of about $4.8tn. Its chips are widely used by leading AI developers, including OpenAI and Meta, placing the firm at the centre of the global AI buildout.
Some investors have questioned whether demand projections are overstated, pointing to Nvidia’s expanding network of partnerships and investments in related companies. Critics have warned that so-called “circular financing” could be masking the true strength of AI spending, although analysts broadly expect investment in AI infrastructure to continue for years.
The company is also navigating geopolitical tensions between the United States and China. Nvidia’s latest outlook did not factor in potential sales to China, despite recent moves by the US government to allow limited exports of its H200 chips under strict conditions. US officials have said no such chips have yet been delivered to Chinese customers.
Alongside supplying hardware, Nvidia is pushing deeper into AI-driven products. At the CES exhibition last month, Huang unveiled a new platform aimed at autonomous vehicles, including an open-source AI model designed to improve reasoning in self-driving systems. The company has also signalled plans to launch a robotaxi service next year with a partner yet to be named.
While Nvidia remains the leader in chips used to train AI models, competition is intensifying in inference — the stage where trained models generate real-world responses. To strengthen its position, the company completed a $20bn acquisition of rival Groq during the fourth quarter, expanding its capabilities in this fast-growing segment.
