NVIDIA doubled profits in 2024 and braces for rosy future
Chip giant NVIDIA’s profits soar 114% in 2024, fueled by AI dominance.
Published on February 27, 2025
NVIDIA has announced its Q4 and fiscal year 2025 financial results, showcasing significant growth fueled by its dominance in the AI market. The chip maker reported a record-breaking revenue of $39.3 billion for the fourth quarter, marking a 78% increase year-over-year. Fiscal year 2025 saw NVIDIA's revenue soar to $130.5 billion, signifying a 114% rise compared to the previous year.
These numbers underscore NVIDIA's critical role in the AI industry, with its chips being pivotal for AI applications like OpenAI's ChatGPT, leading tech giants such as Microsoft and Google to heavily invest in NVIDIA’s technology. Despite emerging competition from companies like DeepSeek, NVIDIA remains a formidable force with its latest AI chip innovations, including the Blackwell and Rubin models. Looking ahead, NVIDIA expects its upcoming quarter's revenue to reach approximately $43 billion, reflecting a continued robust demand for their cutting-edge AI solutions.
Record-breaking financial performance
The semiconductor giant has exceeded market expectations with its latest financial results. Fourth-quarter earnings revealed a remarkable profit surge, with non-GAAP earnings per share reaching $0.89, representing a 71% increase from the previous year. The company's full fiscal year 2025 performance was even more impressive, with profits more than doubling to $74.3 billion. This exceptional growth has reinforced NVIDIA's position as a cornerstone of the AI industry, with its market value having grown by an astounding 478% over the past two years to exceed $3 trillion.
Despite these strong results, NVIDIA's share price has experienced a 5% decline since the beginning of 2025, though shares remain up 65% compared to last year. This slight downturn comes amid broader market concerns, with the tech-heavy Nasdaq Composite index down 1% since the start of 2025.
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NVIDIA future outlook and strategic developments
NVIDIA projects continued strong growth with an expected revenue of $43.0 billion (±2%) for Q1 FY26. The company's CEO, Jensen Huang, highlighted the exceptional demand for their new Blackwell technology, noting how “reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter”. Supporting this optimistic outlook, major tech companies are making substantial investments, with Microsoft confirming an $80 billion infrastructure investment through 2025. NVIDIA is responding to growing demand by planning to double its production capacity for AI chips in 2026 and introduce a new generation of chips with 50% more cores.
Competitive landscape and innovation
While Chinese startup DeepSeek's emergence has raised concerns about potential competition, NVIDIA maintains its dominant position in the AI chip market, counting Microsoft, Google, Oracle, and Amazon among its major customers. The company's continued innovation, particularly with its new Rubin chip development, demonstrates its commitment to staying ahead in the rapidly evolving AI technology landscape. This strategic positioning appears well-timed, as CEO Huang has declared that “generative AI is the most powerful technological development of our time.”