Nvidia posts record annual revenue of $215.9 billion, equal to £159.1 billion. The company overcomes investor doubts about massive AI spending. In the final quarter, sales climb 73% year on year, far exceeding analyst forecasts.
CEO Jensen Huang points to the rapid rise in computing demand. 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 Strengthens Leadership in AI Infrastructure
Nvidia becomes the world’s most valuable publicly traded company, with a market value near $4.8 trillion. The company anchors global AI development, supplying advanced chips to developers including OpenAI and Meta.
Gene Munster of Deepwater Asset Management expects the expansion to continue. AI is advancing faster than most people realize, he writes on X. He emphasizes that users of AI tools understand the pace of change better than outside observers.
Investors continue to watch Nvidia’s growing network of deals. Critics warn of potential circular financing, suggesting the company’s investments in partners may overstate real AI demand. Nvidia counters by pointing to strong orders and sustained client interest.
Geopolitical Tensions Shape China Outlook
Nvidia navigates US-China tensions that influence chip sales. Its latest guidance does not provide specific revenue projections for China. Last month, the US allowed conditional sales of Nvidia’s H200 chips to Chinese customers. The H200 is Nvidia’s second-most advanced processor.
A US Commerce Department official tells lawmakers that no H200 chips have reached China yet. The announcement highlights strict export controls and geopolitical sensitivity.
Expansion into Autonomous Vehicles and Robotics
Nvidia broadens its product portfolio to generate new growth. The company increases its presence 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 bring 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 Q4, Nvidia acquires Groq for $20 billion, strengthening its inference expertise and solidifying market leadership.
