Nvidia delivered a stellar performance at the close of 2024, surpassing Wall Street estimates with robust sales and profit growth that underline its pivotal role in the artificial intelligence revolution. The chipmaking giant reported $39.3 billion in sales for the quarter ended in January—78% higher than the previous year—and a 72% jump in profits, reaching $22 billion. For its full fiscal year, Nvidia’s profits more than doubled to $74.3 billion, solidifying its status as a key player in powering the AI industry.
Immediately following the earnings report, Nvidia’s shares dipped slightly by just over 1% in after-hours trading but rebounded quickly, gaining 2.7% within the first half-hour. This swift turnaround reflects the market’s confidence in Nvidia’s prospects, especially as the company forecasts a 65% year-over-year sales growth to $43 billion in the upcoming quarter, beating analysts’ expectations.
Nvidia’s success is seen as a vital indicator for the broader tech sector, where major players like Google, Meta, Microsoft, and Amazon also saw their shares rise after the report. Despite recent concerns stirred by the launch of DeepSeek—a new, energy-efficient AI model from a Chinese startup—industry experts remain optimistic. While some worry that more cost-effective AI models could dampen spending on AI infrastructure, analysts like Wedbush’s Dan Ives and SWBC’s Chris Brigati insist that ongoing and significant capital expenditures from leading tech companies will continue to drive the AI sector forward.
Nvidia CEO Jensen Huang painted a visionary picture of an AI-pervasive future, citing the auto industry as an example where AI agents could boost productivity and innovation in vehicles. “Someday, there will be a billion cars on the road and every single one of those cars will be robotic cars,” Huang said, hinting at a transformative impact across industries.
Nvidia’s strong performance not only reassures investors amid emerging competition but also reaffirms its unmatched position in the race to fuel AI advancements worldwide.
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