Nvidia has announced its financial results for the fourth quarter and fiscal year, and they make for some pretty astounding figures. Total revenue for the quarter was reported as $68 billion, up 73% year-over-year, but the real headline news is the annual data center revenue: $193.7 billion.
That’s a 68% increase year-over-year, and the sort of money that’s very difficult to get your head around. Not that we were expecting much less, given the runaway success of Nvidia’s Hopper and Blackwell generation AI hardware and its skyrocketing market cap over the past year, but it’s still a pretty astounding result.
And if you were wondering about gaming? It brought in $3.7 billion in Q4, and $16 billion over the full fiscal year—a 41% increase. That’s a pretty good result for RTX 50-series sales and the like, but it’s not difficult to see why Nvidia is all in on AI right now, and us gamers are perhaps feeling like the second string to team green’s AI-crunching efforts.
“We have now scaled our data center business by nearly 13x since the emergence of ChatGPT in [the] fiscal [year] 2023”, said Nvidia’s executive vice president and chief financial officer, Colette Kress.
“We expect sequential revenue growth throughout calendar 2026, exceeding what was included in the $500 billion Blackwell and Rubin revenue opportunity we shared last year. We believe we have inventory and supply commitments in place to address future demand, including shipments extending into calendar 2027.”
(Image credit: Nvidia)
Well, it’s good to hear someone has sufficient inventory supply commitments right now, as the DRAM supply crisis bites the rest of the hardware market and TSMC looks to be pushed near its limits. Nvidia seems to be challenging the supply chain with its massive demand, and while it hoovers up all the resources it can to fulfil a seemingly insatiable demand for more AI-crunching hardware, it’s difficult not to feel like the rest of us are merely caught in its wake.
“Fueled by an annual R&D budget approaching $20,000,000,000 and our ability to extreme codesign across compute and networking across chips, systems, algorithms, and software, we intend to deliver x-factor leaps in performance per watt every generation and extend our leadership position over the long term”, Kress continued in the opening remarks.
However, despite these huge figures and an earnings report that seemingly any company would be proud to show off, the effect on Nvidia’s share price was surprisingly mild. While shares bounced by four percent in after hours trading following the results, the price soon settled back to a more usual rate.
While Nvidia is still all-in on AI, reports indicate that investors may be becoming wary of the spending of many AI firms, amid further warnings that the supply chain may not be able to facilitate continual AI growth. So, while it might be a red letter day as far as team green is concerned, there are signs that the market is perhaps becoming a little more cautious regarding the financial future of AI as a whole.
