Nvidia announces record revenue figures that underscore how central AI infrastructure has become to global tech spending.
In its latest earnings report, the chipmaker says it generated $68 billion in quarterly revenue, beating estimates of $66 billion.
Earnings per share came in at $1.62 versus expectations of $1.54, while data center revenue reached $62 billion, ahead of the $60 billion consensus. Meanwhile, gross margins held at 75%, in line with forecasts.
For the first quarter, Nvidia guides revenue to $78 billion, well above estimates of $72 billion, and says the outlook does not assume any data center compute revenue from China.
On a full-year basis, Nvidia delivers record revenue of $215.9 billion, up 65% year over year.
Speaking at the earnings call, CEO Jensen Huang says hyperscalers have allocated hundreds of billions of dollars in CapEx this year because they understand that compute is equivalent to revenue.
“I am confident in their cash flow growing. And the reason for that is very simple. We have now seen the inflection of agentic AI and the usefulness of agents across the world and enterprises everywhere. You are seeing incredible compute demand because of it. This new world of AI, compute is revenues. Without compute, there is no way to generate tokens. Without tokens, there is no way to grow revenues.
So in this new world of AI, compute equals revenues.”
Turning to OpenAI, Huang says Nvidia is still hammering out the details of its potential investment in the ChatGPT creator.
“We continue to work with OpenAI toward a partnership agreement and believe we are close. We are thrilled with our ongoing partnership with OpenAI, a once-in-a-generation company we have had the pleasure of partnering with since their first days.”
Earlier this year, reports surfaced that talks about Nvidia’s up to $100 billion investment in OpenAI had stalled, with Huang saying the massive figure was never on the table. But Huang clarified that Nvidia still intends to “invest a great deal of money” in OpenAI.
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