Nvidia Still Dominates

At the end of February, Wall Street held its breath ahead of Nvidia’s report, fearing that controversial figures could destabilize the stock market. And it exhaled. Nvidia’s net profit for the quarter ended in January rose 80% year-over-year to $22 billion, even though operating expenses rose nearly 50% (profitability declined due to the transition to “more complex and costly” Blackwell systems). In fact, Nvidia’s strong earnings exceeded expectations, as did its sales forecast for the current quarter at $43 billion.

This is the first report from the chipmaker since the sudden popularity of China’s DeepSeek, whose model requires less powerful microchips, temporarily wiped out over $600 billion from NVDA’s market value in January. (https://t.me/Expert_kroshnyi/2611) Since then, Nvidia’s shares have almost recovered. CEO Jensen Huang is very optimistic about the prospects for the flagship artificial intelligence server system, Blackwell — GB200 NVL72. He is now more enthusiastic than he was at CES.

Basic Figures

⬆️ Record quarterly revenue of $39.3 billion 👉 12% more than in the third quarter and 78% more than a year ago

⬆️ Record quarterly data center revenue of $35.6 billion 👉 increased by 16% compared to the 3rd quarter and by 93% compared to the previous year

⬆️ Record annual revenue of $130.5 billion 👉 growth of 114%

⬆️ Record annual data center revenue of $115.2 billion 👉 growth of 142%

⬆️ Quarterly diluted EPS GAAP of $0.89 👉 14% more than the previous quarter and 82% more than a year ago

The demand for Blackwell is astounding, as smart AI adds another scaling law — more computation for training makes models smarter, and more computation for longer planning makes responses smarter. We are successfully ramping up large-scale production of Blackwell AI supercomputers, reaching billion-dollar sales in the first quarter.” AI is developing at lightning speed: agent AI and physical AI create the foundation for the next wave, which will revolutionize the largest industries.

Details about Nvidia’s progress in the “Data Center” segment 

— NVIDIA will act as a key technology partner for the $500 billion “Stargate” project

— Cloud service providers AWS, CoreWeave, Google Cloud Platform (GCP), Microsoft Azure, and Oracle Cloud Infrastructure (OCI) supply NVIDIA® GB200 systems worldwide

— Cisco announced the integration of NVIDIA Spectrum-X™ into its networking portfolio

— Announced collaboration with Verizon to integrate NVIDIA AI Enterprise, NIM, and accelerated computing with Verizon’s private 5G network to support a variety of AI applications and services in enterprises

— Announced partnerships with industry leaders, including IQVIA, Illumina, Mayo Clinic, and Arc Institute, for advancements in genomics, drug discovery, and healthcare

— Announced the opening of NVIDIA’s first R&D center in Vietnam

Forecast for the 1st quarter of the 2026 fiscal year

• Revenue expected to be $43 billion (plus or minus 2%)
• Gross margin GAAP and non-GAAP at 70.6% and 71% (plus or minus 50 basis points)
• Operating expenses GAAP and non-GAAP approximately $5.2 billion and $3.6 billion, respectively

P.S.Huang specifically highlighted DeepSeek, stating that new “reasoning” models like DeepSeek’s R1 consume much more microchip power than their predecessors, and their sudden emergence has “sparked global enthusiasm” for the technology. He dismissed concerns that DeepSeek could train models on less advanced chips than competitors, saying demand for Nvidia’s latest Blackwell chips was “amazing.” Data center revenue nearly doubled in the reported quarter. Blackwell revenue for the quarter was $11 billion – not shocking, but with no obvious vulnerabilities.