Nvidia Reports Record-Breaking Revenue on Blackwell Earnings
Nvidia has announced a quarterly revenue of US$39.3bn for its fourth quarter ended January 26. This represents a 78% increase year-on-year and a 12% rise from the previous quarter.
The results conclude a fiscal year where Nvidia's revenues more than doubled to US$130.5bn, driven by overwhelming demand for AI compute infrastructure, particularly as global businesses are looking to deploy generative AI (Gen AI) applications.
Significantly, the company's Blackwell architecture, which was revealed last year at GTC and launched this quarter, generated US$11bn in revenue. Colette Kress, Nvidia's Executive Vice President and Chief Financial Officer, described this as “the fastest product ramp in our company's history.”
“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,” says Jensen Huang, Founder and CEO of Nvidia.
“We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter.”
Reaching new heights
Nvidia’s data centre segment continues to be its primary source of revenue, hitting US$35.6bn for its quarterly revenue, representing a 93% year-on-year increase and a 16% sequential rise.
For the full fiscal year, Nvidia's data centre revenue reached US$115.2bn, which has skyrocketed by 142% from the previous year.
Cloud service providers accounted for approximately 50% of Nvidia's data centre revenue, with major cloud leaders like AWS, CoreWeave, Google Cloud Platform, Microsoft Azure and Oracle Cloud Infrastructure deploying Nvidia GB200 systems worldwide to meet customer demand.
- $130.5 billion: Total revenue for fiscal year 2025, up 114% from the previous year
- $11 billion: Revenue generated by the new Blackwell architecture in its first quarter
- 50%: Proportion of Data Centre revenue coming from cloud service providers
Likewise, data centre compute revenue was US$32.6bn, which has surged by 116% from a year ago and is up 18% sequentially. This has largely been driven by demand for the Blackwell computing platform and growth from the H200 offering.
Networking revenue was US$3bn, down 9% from a year ago as the company transitions “from small NVLink 8 with Infiniband to large NVLink 72 with Spectrum X,” according to Colette.
Professional markets grow despite supply constraints
Despite such advances in the data centre world, Nvidia’s gaming segment continues to face challenges. For one thing, revenue was US$2.5bn, which is down 11% from a year earlier. Nvidia has attributed this to supply constraints.
“Gaming revenue for the fourth quarter was down 11% from a year ago and down 22% sequentially, due to limited supply for both Blackwell and Ada GPUs,” says Colette.
Despite the quarterly decline, gaming revenue for the full fiscal year rose 9% to US$11.4bn. During this particular quarter, Nvidia announced new GeForce RTX 50 Series graphics cards and laptops powered by the Blackwell architecture, which the company claims deliver up to twice the performance of the previous generation.
Elsewhere, professional visualisation revenue increased 10% year-on-year and 5% sequentially to US$511 million, driven by “the continued ramp of Ada RTX GPU workstations for use cases such as generative AI-powered design, simulation, and engineering,” according to Colette.
Full-year revenue in this segment rose 21% to US$1.9bn.
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.
What the next chapter for Nvidia holds
Nvidia’s margin compression has caught the attention of market analysts. Kate Leaman, Chief Market Analyst at AvaTrade, notes that while Nvidia continues to post robust results, there are concerns about profitability moving forward.
“Blackwell chips are more expensive to produce, and that's putting pressure on Nvidia's profit margins,” she notes. “While revenue is soaring, analysts are keeping a close eye on whether this margin squeeze could impact the company's long-term profitability.
“DeepSeek's AI models may reduce the demand for Nvidia's high-performance chips by making AI more efficient. On the other hand, if these models drive greater adoption of AI technology overall, Nvidia's sales could remain strong.”
Ultimately, Nvidia is pushing forward and continuing to expand its operations. The chip giant has announced that it will serve as a technology partner for the US$500bn Stargate Project, in addition to establishing new geographical locations, including its first R&D centre in Vietnam.
The company will also be forming partnerships across key industries such as healthcare, genomics and drug discovery with organisations including IQVIA, Illumina and Mayo Clinic to accelerate innovation.
Jensen says: “AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionise the largest industries.”
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