Nvidia posts a record annual revenue of $215.9 billion, equal to £159.1 billion. The company overcomes investor concerns about heavy spending on artificial intelligence. Sales in the final quarter rise 73% year on year, far surpassing analyst predictions.
CEO Jensen Huang emphasizes the explosive growth in computing needs. Computing demand is growing exponentially, he says. Customers are rushing 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 Consolidates Its Lead in AI Infrastructure
Nvidia ranks as the world’s most valuable publicly traded company, with a market value near $4.8 trillion. The company drives global AI development, supplying advanced chips to developers including OpenAI and Meta.
Gene Munster from Deepwater Asset Management predicts the growth trend will continue. AI is advancing faster than many realize, he writes on X. He notes that users of AI tools understand the speed of change better than outside observers.
Investors continue to monitor Nvidia’s expanding deal network. Critics warn of possible circular financing, suggesting the company’s investments in partners may inflate perceived AI demand. Nvidia counters by pointing to strong orders and robust client interest.
Geopolitics Shape China Strategy
Nvidia faces US-China tensions affecting chip sales. Its latest outlook does not provide detailed revenue 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 tells lawmakers that no H200 chips have been sold in China yet. The disclosure highlights strict export controls and geopolitical sensitivity.
Expansion into Autonomous Vehicles and Robotics
Nvidia expands its product portfolio to generate new growth. The company moves deeper into 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 to add reasoning capabilities to autonomous cars. Nvidia also plans 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 the fourth quarter, Nvidia acquires Groq for $20 billion, boosting its inference capabilities and strengthening market leadership.
