Nvidia announces record annual revenue of $215.9 billion, equivalent to £159.1 billion. The company outpaces investor doubts about heavy spending on artificial intelligence. In the final quarter, sales rise 73% year on year, far above analyst expectations.
CEO Jensen Huang highlights the surge in computing demand. Computing demand is growing exponentially, he says. Customers race to expand AI compute infrastructure. He describes these systems as the factories of the AI industrial revolution. Huang ties them directly to long-term business growth.
Nvidia Dominates the AI Infrastructure Market
Nvidia becomes the world’s most valuable publicly traded company, with a market value around $4.8 trillion. The company leads global AI development, providing advanced chips to developers including OpenAI and Meta.
Gene Munster of Deepwater Asset Management expects the growth trajectory to continue. AI is advancing faster than most people realize, he writes on X. He emphasizes that users of AI tools understand the speed of change better than outside observers.
Investors continue to watch Nvidia’s expanding network of deals. Critics warn of possible circular financing, suggesting investments in partner companies may overstate real AI demand. Nvidia counters by pointing to strong orders and robust client interest.
Geopolitical Pressures Influence China Revenue
Nvidia faces US-China tensions affecting chip sales. Its latest guidance does not include detailed revenue projections for China. Last month, the US approved conditional sales of Nvidia’s H200 chips to Chinese buyers. 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 announcement underscores strict export controls and geopolitical sensitivity.
Expansion into Autonomous Vehicles and Robotics
Nvidia broadens its product portfolio to drive growth. The company increases involvement 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 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 the fourth quarter, Nvidia acquires Groq for $20 billion, strengthening its inference expertise and solidifying market leadership.
