Nvidia reports record annual revenue of $215.9 billion, equal to £159.1 billion. The company defies investor concerns over massive AI spending. In the final quarter, sales jump 73% year on year, far surpassing analyst expectations.
CEO Jensen Huang highlights soaring demand for computing power. Computing demand is growing exponentially, he says. Customers rush to expand AI compute infrastructure. He calls these systems the factories of the AI industrial revolution. Huang ties them directly to long-term business growth.
Nvidia Solidifies Its Lead in AI Infrastructure
Nvidia becomes the world’s most valuable publicly traded company, with a market value near $4.8 trillion. The company drives global AI development, providing advanced chips to developers including OpenAI and Meta.
Gene Munster of Deepwater Asset Management expects the growth trend to continue. AI is advancing faster than most people realize, he writes on X. He emphasizes that users of AI tools grasp the pace of change better than outside observers.
Investors continue to scrutinize Nvidia’s expanding network of deals. Critics warn of potential circular financing, suggesting investments in partners may overstate real AI demand. Nvidia counters by pointing to strong orders and robust client interest.
Geopolitical Challenges Affect China Outlook
Nvidia faces rising tensions between the US and China that shape chip sales. Its latest guidance does not include detailed revenue projections for China. Last month, the US approved conditional sales of Nvidia’s H200 chips to Chinese customers. The H200 is Nvidia’s second-most advanced processor.
A US Commerce Department official informs lawmakers that no H200 chips have reached China yet. The announcement underscores strict export controls and geopolitical sensitivity.
Expansion into Autonomous Vehicles and Robotics
Nvidia broadens its product portfolio to drive new growth. The company increases its involvement in 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 add reasoning capabilities to autonomous cars. Nvidia also plans to launch a robotaxi service next year with an undisclosed partner.
While Nvidia dominates AI model training, it faces growing competition in inference computing. Inference applies trained AI models to real-world data for reasoning. In the fourth quarter, Nvidia acquires Groq for $20 billion, strengthening its inference expertise and solidifying market leadership.
