Nvidia announces record annual revenue of $215.9 billion, equivalent to £159.1 billion. The company overcomes investor concerns about massive AI investments. In the last quarter, sales soar 73% year on year, well above analyst expectations.
CEO Jensen Huang highlights the rapid rise in computing demand. Computing demand is growing exponentially, he explains. Customers race to expand AI compute infrastructure. He calls these systems the factories of the AI industrial revolution. Huang links them directly to long-term growth prospects.
Nvidia Reinforces Its Position 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, providing advanced chips to developers such as OpenAI and Meta.
Gene Munster, managing partner at Deepwater Asset Management, predicts ongoing expansion. AI is advancing faster than most people realize, he writes on X. He emphasizes that users of AI tools understand this rapid pace better than outside observers.
Investors continue to scrutinize Nvidia’s growing network of deals. Critics raise concerns about circular financing, suggesting investments in partner companies may overstate real AI demand. Nvidia points to strong customer orders and sustained market growth.
Geopolitical Factors Affect China Revenue
Nvidia faces US-China tensions that influence its chip sales. The company’s latest guidance does not include detailed 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 update highlights strict export controls and political sensitivity.
Expansion into Autonomous Vehicles and Robotics
Nvidia broadens its product range to drive future 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, which adds reasoning capabilities to autonomous cars. Nvidia also plans to launch a robotaxi service next year with an undisclosed partner.
While Nvidia leads AI model training, competition grows 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 its market leadership.
