Wall Street feared that there was a waning demand for Nvidia's premium chips, especially after Chinese AI upstart DeepSeek's budget-friendly AI model sent shockwaves through Silicon Valley particularly among the more technologically clueless of the analysts.
The tech titan's adjusted earnings per share hit $0.89, eclipsing the anticipated $0.84. The data centre division shone brightly, raking in $35.6 billion, a notable leap from the projected $34.06 billion. Looking ahead, Nvidia projects a $43 billion in first-quarter revenue, outstripping the $41.78 billion analysts had in mind.
However, it's not all smooth sailing. As production of the Blackwell GPU ramps up, the company's gross margins are feeling the pinch.
CFO Colette Kress candidly addressed concerns about potential tariff impacts, admitting the situation remains "a little bit of an unknown."
She reassured stakeholders, noting that margins should see improvement later in the year once Blackwell's production is in full swing.
CEO Jensen Huang couldn't contain his enthusiasm, dubbing the demand for Blackwell as "extraordinary."
"AI is advancing at light speed. We're just at the start of the age of AI." He further highlighted the insatiable appetite for Blackwell GPUs, describing the demand as "amazing."
Despite initial investor jitters over Chinese startup DeepSeek's budget-friendly AI models potentially undercutting Nvidia's market share, Huang dismissed these concerns.
He praised DeepSeek's open-source approach, stating it has "ignited global enthusiasm" and expanded the AI landscape, ultimately benefiting Nvidia.
Despite these stellar figures, Nvidia's stock experienced a rollercoaster in after-hours trading, dipping by as much as two per cent before stabilising. Year-to-date, the stock has slid 2.2 per cent, trailing behind the S&P 500's 1.3 per cent uptick.
In a nutshell, Nvidia continues to flex its muscles in the AI chip arena, deftly navigating –market jitters and emerging challengers. With the Blackwell GPU leading the charge and a promising forecast on the horizon, the company seems poised to maintain its dominance in the tech world.
The tech titan's latest marvel, the Blackwell GPU, has taken the market by storm, raking in a jaw-dropping $11 billion in just one quarter. This unprecedented demand is primarily driven by major cloud service providers eager to harness the power of advanced AI capabilities.
Looking ahead, Nvidia projects first-quarter revenue to hit a whopping $43 billion, outpacing analyst forecasts of $42.1 billion.
However, the company remains cautious about potential challenges, including possible tariffs under President Donald [hamburger-eating surrender monkey] Trump's administration and the ongoing transition from the Hopper chip to the Blackwell architecture.
