When Nvidia lost $ 600 billion in market value in one day last month, it was because some investors were afraid of the future of artificial intelligence chipmaker. Deepseek, a Chinese start, said that it had made AI systems with a small fraction of AI chips used by other companies and with a small fraction of cost.
On Wednesday, Nvidia showed that these fears were exaggerated, even when the rate of its growth slowed down. The company, a Bellwether for AI, said its markets of chips increased its total revenue by 78 % over the previous year to $ 39.33 billion during the three months ended in January. Profit increased by 80 % to $ 22.09 billion.
In previous quarters, Nvidia said sales and profits had more than doubled. But continuing to produce these profits has become more difficult as its sales and profits are increasing. (For a business like Nvidia, it is common for growth rate to slow down after a period of apparent increases, a phenomenon known as a large number law.)
Nvidia’s quarterly results exceeded Wall Street analysts’ expectations of $ 38.32 billion and $ 21.08 billion profits. than Wall Street had predicted.
Nvidia’s shares were almost flat in transactions after hours, after a profit of 3.7 % on Wednesday. It remains the second most popular company negotiating the public behind Apple.
Nvidia’s business has been reinforced by the highest expenditure of AI Data Centers. After throwing tens of billions of dollars on new infrastructure last year, Amazon, Microsoft, Alphabet and Meta said they would spend 65 billion to $ 100 billion or more this year.
Many of this money will flow straight to Nvidia. The company, with some estimates, controls 90 percent of the market for graphics or GPU markets, Power AI systems. It launches a new, more powerful AI chip line known as Blackwell and charges $ 60,000 to $ 70,000 for a signature chip. Blackwell has contributed to sales of $ 11 billion during the quarter.
How long the construction of the data centers will last last was a question since the start of the AI ​​explosion. Deepseek has challenged a consensus of the technology industry that builds larger and better AI systems, companies should create larger and stronger data centers. It began fears that companies could reinstate their spending with Nvidia.
Since then, a new consensus has emerged that Nvidia will continue to benefit because it will be accessible for more companies to develop AI systems. An extensive field of AI businesses would create more customers for Nvidia’s expensive chips, no less, as it was initially afraid.
Nvidia said the revenue from the Data Center, which includes the sale of chips, cables and high -performance cables and computers, increased by 93 % to $ 35.58 billion a quarter from the previous year.
“No one supports their commitment to the construction of AI data centers and the power to produce more electricity for these data centers,” said Brian Mulberry, Zacks Investment Management, a financial company that monitors NVIDIA. “Everyone is still competing.”
Although Nvidia has recovered since the end of January, concerns about the expenditure of the Data Center continues to forge the stock. The shares declined nearly 6 % at the beginning of the week, as Wall Street analysts reported that Microsoft had canceled certain data center contracts. Microsoft did not respond to requests for comments.
Jensen Huang, chief executive of NVIDIA, told a call with analysts on Wednesday that the company would benefit as businesses changed the way they developed AI because the Blackwell chips were more powerful and flexible than their predecessor. It also has visibility in the amount of money spent in the data centers, which have said they will grow as companies have introduced new tools such as AI agents who can perform autonomous duties such as online purchases.
“The next wave is coming,” Mr Huang said. He added, “We are at the center of this development and we can see a great deal of activity happening.”
“We have successfully achieved the mass production of Blackwell AI supercomputers, achieving billions of dollars in sales in the first quarter. AI is proceeding at light speed.”
Nvidia continues to face geopolitical challenges. Biden’s administration destroyed the sale of chips to China and introduced a rule to cover the sales of the AI ​​chips in more than 100 countries. Howard Lutnick, Minister of Commerce of Trump’s administration, told Congress during a confirmation that technology companies, including Nvidia, “must stop helping” China.
As the US government began to limit chips exports, NVIDIA sales in China have decreased to half to about 15 % of total revenue. The company said it did not expect sales in China recover.
Late last month, Mr. Huang visited the White House to discuss AI and semiconductors with President Trump. Mr Trump later told reporters that he could not say if he would ban more than Nvidia chips in China. He has also threatened invoices to semiconductors, including Nvidia chips in Taiwan.
Colette Kress, head of NVIDIA finances, said the company is monitoring the invoices. “It is unknown until we understand further what the plan of the US government is, both the timetable, where and how much,” he said. “We’re waiting.”
