Nvidia posts record annual revenue of $215.9 billion, equal to £159.1 billion. The company defies investor concerns over massive artificial intelligence spending. In the final quarter, sales jump 73% compared to the same period last year. Analysts had expected far lower numbers.
CEO Jensen Huang points to skyrocketing demand for computing power. Computing demand is growing exponentially, he says. Customers rush to build AI compute infrastructure. He calls these systems the factories of the AI industrial revolution. Huang links them directly to long-term business growth.
Nvidia Leads the Global AI Ecosystem
Nvidia becomes the world’s most valuable publicly traded company, with a market value near $4.8 trillion. The firm dominates the AI infrastructure sector, supplying advanced chips to developers like OpenAI and Meta.
Gene Munster, managing partner at Deepwater Asset Management, predicts the expansion will continue. AI is advancing faster than many people realize, he writes on X. He says users of AI tools understand the pace of change better than outsiders.
Investors remain wary of Nvidia’s growing web of deals. Some warn of “circular financing,” where investments in partners may overstate real AI demand. Nvidia counters by pointing to strong customer orders and sustained growth.
Geopolitical Tensions Shape China Strategy
Nvidia faces a geopolitical tug-of-war between the US and China. Its latest outlook does not include revenue expectations from China. Last month, the US allowed conditional sales of Nvidia’s H200 chips to Chinese customers. The H200 is Nvidia’s second-most advanced chip.
A US Commerce Department official tells lawmakers that no H200 chips have reached China yet. The announcement highlights the political sensitivity surrounding advanced chip exports.
Expansion Into Autonomous Vehicles and Robotics
Nvidia broadens its product line to drive new demand. The company moves deeper into AI-powered physical products. At CES in Las Vegas, Huang unveils a platform for self-driving vehicles.
He introduces an open-source AI model called Alpamayo, designed to bring reasoning to autonomous cars. Nvidia plans to launch a robotaxi service next year with an undisclosed partner.
While Nvidia dominates AI model training, competition intensifies in inference computing. Inference applies trained AI models to real-world data for reasoning. In Q4, Nvidia acquires Groq for $20 billion, expanding its inference expertise and reinforcing market leadership.
