Nvidia reports a record annual revenue of $215.9 billion, equivalent to £159.1 billion. The company surpasses investor doubts about massive AI spending. In the final quarter, sales climb 73% year on year, exceeding analyst expectations by a wide margin.
CEO Jensen Huang highlights soaring demand for computing power. Computing demand is growing exponentially, he explains. 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 expansion.
Nvidia Strengthens Its Grip on AI Infrastructure
Nvidia becomes the world’s most valuable publicly traded company, valued around $4.8 trillion. The company anchors global AI development, providing advanced chips to developers including OpenAI and Meta.
Gene Munster of Deepwater Asset Management expects continued growth. AI is advancing faster than many observers understand, he writes on X. Users of AI tools grasp the pace of change more clearly than outsiders, he adds.
Investors remain cautious of Nvidia’s expanding network of deals. Critics warn about potential circular financing, suggesting Nvidia’s investments in partners may exaggerate real AI demand. Nvidia emphasizes strong orders and rising client commitments.
Geopolitical Challenges Affect China Outlook
Nvidia faces tension between the US and China. Its latest guidance excludes specific revenue projections for China. The US recently allowed conditional sales of Nvidia’s H200 chips to Chinese buyers. The H200 ranks as Nvidia’s second-most advanced processor.
A US Commerce Department official informs lawmakers that no H200 chips have yet reached China. The statement highlights strict export controls and political sensitivity.
Expanding Into Autonomous Vehicles and Robotics
Nvidia broadens its product range to drive growth. The company increases its involvement in AI-powered physical products. At CES in Las Vegas, Huang introduces a platform for self-driving vehicles.
He unveils an open-source AI model called Alpamayo to provide reasoning capabilities for autonomous cars. Nvidia plans to launch a robotaxi service next year with an undisclosed partner.
Nvidia leads in AI model training but faces 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 capabilities and solidifying market leadership.
