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It’s well-known that NVIDIA is a cornerstone of the AI growth, however its monetary outcomes launched on February 26 illustrate precisely how a lot the corporate has prospered. NVIDIA noticed a 78% year-over-year improve in quarterly income, reaching a document $39.three billion. Quarter-over-quarter, NVIDIA’s income grew 12%.
“We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter,” stated NVIDIA CEO and cofounder Jensen Huang in a press launch. “AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries.”
Growth pushed by knowledge facilities and Blackwell chips
Data middle income was particularly outstanding, with quarterly income of $35.6 billion – that’s a 16% improve from Q3 and up 93% from one 12 months in the past. Full-year income in knowledge facilities was $130.5 billion, a rise of 114%.
For traders, the report might be an indication that the AI growth exhibits no signal of collapsing. NVIDIA’s Blackwell GPU, introduced in early 2024, permits the massive language mannequin coaching and inference required for generative AI. Cloud service suppliers and supercomputing initiatives have snapped up the chips.
“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,” Huang stated within the press launch.
NVIDIA estimates predict income within the first quarter of 2025 might be $43.zero billion.
Generative AI necessities improve as demand goes up, too
While some dialog within the generative AI area proposes high-performance fashions may be skilled extra effectively at present than within the final 12 months, Huang anticipates next-generation AI will want extra compute. Speaking to CNBC, he stated “reasoning” fashions that assume step-by-step – like OpenAI o1 or DeepSeek-R1 – will name for extra of his firm’s GPUs.
As a Chinese firm, DeepSeek is restricted from buying NVIDIA’s high-end chips. Some U.S. chips, together with the NVIDIA H20, have been downgraded particularly for the Chinese market. NVIDIA’s share of income from China fell by about half because of the export restrictions, Huang instructed CNBC.
