Nvidia, the prominent chip designer and the world’s most valuable company, recently announced unprecedented earnings for its latest fiscal quarter on Wednesday, propelled by the surging global demand for AI computing power.
“The demand for tokens in the world has gone completely exponential,” CEO Jensen Huang remarked during an analyst call following the financial disclosure. He added, “I think we’re all seeing that, to the point where even our six-year-old GPUs in the cloud are completely consumed and the pricing is going up.”
The company posted a substantial $68 billion in revenue for the most recent quarter, marking a remarkable 73% increase year-over-year. A significant portion of this, $62 billion, was generated by Nvidia’s robust data center business.
Breaking down the data center revenue, Nvidia reported $51 billion derived from compute products, primarily its graphics processing units (GPUs), and $11 billion from networking solutions such as NVLink. The company’s total revenue for the full year reached an impressive $215 billion.
Consistent with previous quarters, Nvidia did not record any revenue from chip exports to China, despite the recent easing of export restrictions by the U.S. government. Colette Kress, the company’s chief financial officer, clarified, “While small amounts of H200 products for China-based customers were approved by the US government, they have yet to generate any revenue, and we do not know whether any imports will be allowed into China.”
Kress also issued a caution regarding the competitive landscape, stating, “Our competitors in China, bolstered by recent IPOs, are making progress and have the potential to disrupt the structure of the global AI industry over the long term.” This observation appeared to reference events like Moore Threads’ initial public offering in December.
During the investor briefing, Huang also addressed the company’s anticipated investment in OpenAI, an amount widely reported to be around $30 billion.
“We continue to work with OpenAI toward a partnership agreement. We believe we are close,” Huang affirmed. He further highlighted existing partnerships with other key players in the AI space, including Anthropic, Meta, and Elon Musk’s xAI. However, Nvidia’s filings with the U.S. Securities and Exchange Commission on Wednesday underscored that there was “no assurance” such an investment would ultimately materialize.
Huang also tackled concerns regarding the sustainability of capital expenditure commitments by technology companies, expressing his conviction that these significant compute investments would soon translate into revenue.
He articulated his vision, stating, “In this new world of AI, compute is revenue. Without compute, there’s no way to generate tokens. Without tokens, there’s no way to grow revenues.” Huang concluded optimistically, “We’ve reached the inflection point and we’re generating profitable tokens that are productive for customers and profitable for the cloud service providers.”
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