Nvidia posts record $22 billion quarterly profit amid surging AI demand

Nvidia continues its meteoric rise in the AI revolution, posting a record $22.09 billion profit in Q4 2025, capping off a year of extraordinary financial gains. With $14.8 billion in Q1, $16.6 billion in Q2, and $19.3 billion in Q3, the chipmaker has now averaged $2,300 in pure profit every second over the past year.

The Santa Clara-based company’s latest earnings report dispelled concerns about a potential slowdown in AI spending, particularly after recent claims by Chinese AI startup DeepSeek, which boasted developing cost-effective AI models rivalling Western counterparts.

Nvidia CEO Jensen Huang reaffirmed confidence in the company’s outlook, stating, “AI is advancing at light speed. Demand for Blackwell is amazing.”

The Blackwell AI supercomputers, which integrate graphics chips, processors, and networking equipment, contributed a staggering $11 billion in revenue in Q4 alone, accounting for nearly 50% of Nvidia’s total data center revenue.

As the company transitions to its Blackwell chip architecture, Nvidia is shifting focus from selling individual chips to offering full-scale AI computing systems. Huang emphasised that the massive-scale production of Blackwell AI supercomputers has already generated billions of dollars in sales in its first quarter.

For Q1 2026, Nvidia has forecasted $43 billion in revenue, plus or minus 2%, surpassing analysts’ estimates of $41.78 billion. This has helped restore investor confidence, following a volatile month that saw Nvidia suffer a $593 billion market cap loss, the largest one-day decline for any U.S. company.

Analyst Jacob Bourne of eMarketer noted: “Unlike previous quarters, there was heightened scepticism going into this report due to concerns about DeepSeek’s efficient model and questions surrounding the Blackwell rollout. But the results have removed the doubts.”

Despite the strong earnings, Nvidia’s gross margin for Q1 is expected to dip to 71%, slightly below Wall Street’s 72.2% projection. However, CFO Colette Kress assured investors that margins will return to the mid-70% range as Blackwell production scales up and costs decrease.

Meanwhile, tech giants continue to pour billions into AI infrastructure. Microsoft has earmarked $80 billion for AI investments, while Meta Platforms plans to spend up to $65 billion.

In another win for the company, Kress confirmed that the U.S. government’s ‘Stargate’ data center project will utilise Nvidia’s Spectrum X ethernet for networking.

Record-Setting Financials

    •    Adjusted EPS: 89 cents (vs. estimates of 84 cents)
    •    Q4 Revenue: $39.3 billion (vs. expected $38.04 billion)
    •    Data Center Sales: $35.6 billion (+93% YoY, vs. expected $33.59 billion)