Nvidia Surpasses Expectations on Strong Data Center Performance
Total quarterly revenue jumped 73% to $68.13 billion, with over 91% of sales generated by the data center division, which includes the company’s leading AI chips. Data center revenue reached $62.3 billion, exceeding projections. Net income soared 93% to $43 billion, or $1.76 per share, up from $22.1 billion, or $0.89 per share, in the same period last year.
Nvidia issued stronger-than-expected guidance, projecting fiscal first-quarter revenue of around $78 billion, plus or minus 2%, above analysts’ estimates of $72.6 billion. The company noted this forecast excludes data center revenue from China.
Commenting on the results, Nvidia’s CFO Colette Kress said hyperscalers remain the company’s largest customer group, accounting for just over half of total data center revenue. Within the segment, networking revenue climbed 263% to $10.98 billion, reflecting strong demand for NVLink interconnect technology and Spectrum-X Ethernet switches, including new agreements with major clients such as Meta. These components link hundreds of GPUs in large-scale AI systems.
Meanwhile, Nvidia’s gaming division — previously its largest business — saw revenue rise 47% year-on-year to $3.7 billion, though it fell 13% from the prior quarter.
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