Chip-making powerhouse Nvidia has once again defied Wall Street forecasts, posting a staggering 78% year-over-year revenue surge, driven by its dominance in artificial intelligence (AI) microchips.
In its earnings report for the fourth quarter of its 2025 fiscal year, released on Feb. 26, Nvidia reported revenues of $39.3 billion. This marks a 12% rise from the previous quarter and significantly surpasses analysts’ projections of $37.72 billion. Additionally, its earnings per share (EPS) of 89 cents outperformed expectations of 84 cents, according to Zacks Investment Research.
CEO Jensen Huang attributed the company’s remarkable growth to soaring demand for its Blackwell microchips, which power AI, machine learning, and high-performance computing.
“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,” Huang stated during the earnings call.
Nvidia’s data center segment was the primary driver behind its earnings boom, contributing over 90% of total revenue. The division pulled in $35.6 billion—an astonishing 93% increase from a year ago.
Despite its financial success, Nvidia’s stock remains below its all-time high. On Feb. 26, shares of Nvidia Corp (NVDA) closed at $131.28, up 3.67% for the day, according to Google Finance. However, after-hours trading saw a dip of 1.49% to $129.32. This remains well below the company’s November peak, when shares exceeded $147.
The company also experienced a historic market shock earlier this year. On Jan. 27, Nvidia suffered the largest one-day value drop in U.S. stock market history, losing nearly 17% of its share value—equivalent to $600 billion—after Chinese AI firm DeepSeek unveiled a model rivaling OpenAI’s ChatGPT.
As the AI arms race intensifies, other tech giants are ramping up efforts. Microsoft, for instance, is expanding its AI footprint with two new AI research centers in Abu Dhabi. Meanwhile, Bitcoin mining firms are pivoting towards AI, leveraging their computational resources to support AI-driven workloads.
Interestingly, Nvidia’s fluctuating valuation has broader economic implications. A report by 10x Research in January suggested that a decline in AI spending could reduce inflationary pressures, potentially influencing the Federal Reserve’s monetary policies—a bullish development for Bitcoin and the broader crypto market.
Also Read: Bitcoin Crash to $82K Amid $770B Liquidation – NVIDIA Rally & ETF Outflows Fuel Market Wipeout
With AI’s rapid growth fueling Nvidia’s dominance, investors remain watchful as competition in the sector heats up.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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