Nvidia closed out 2024 with exceptional financial results, surpassing Wall Street expectations with soaring sales and profits. The chipmaking giant’s performance signals continued strength in the artificial intelligence sector, easing concerns in Silicon Valley.
Despite a brief 1% dip in after-hours trading on Wednesday, Nvidia’s stock rebounded quickly, gaining 2.7% within 30 minutes of its earnings report release. The company reported $39.3 billion in sales for the January quarter—up 78% from the previous year—while quarterly profits surged 72% to $22 billion. For the full fiscal year, Nvidia’s profits more than doubled to $74.3 billion, solidifying its position as a dominant force in AI computing.
Looking ahead, Nvidia projects continued growth, expecting a 65% year-over-year increase in sales to $43 billion for the current quarter—exceeding analyst forecasts.
Despite increasing competition, Nvidia remains the leading supplier of AI chips, powering systems for major tech companies. Its latest earnings report reassured investors about AI spending trends, boosting shares of other tech giants like Google, Meta, Microsoft, and Amazon.
However, the launch of DeepSeek—a highly efficient AI model from a Chinese startup—has raised concerns about potential shifts in AI investment strategies. Some industry observers worry that U.S. tech firms might be overinvesting in AI infrastructure without guaranteed returns, which could impact Nvidia’s business.
While Nvidia’s stock has dipped 5% since the start of the year due to these concerns, it remains up 65% from last year. The company’s influence on the broader tech market remains significant, with the Nasdaq Composite index also reflecting the impact of tech stock fluctuations.
Despite speculation, leading AI companies have continued to invest billions in infrastructure, signaling sustained demand for Nvidia’s technology. Wedbush analyst Dan Ives estimates that the “Magnificent Seven” tech giants—Microsoft, Amazon, Meta, Apple, Alphabet, Nvidia, and Tesla—will collectively spend $325 billion on AI-related projects this year.
Industry experts argue that more efficient AI models like DeepSeek could actually accelerate AI adoption, benefiting Nvidia in the long run. Emarketer analyst Jacob Bourne emphasized that the company’s latest results reaffirm its leadership in AI hardware, sidelining skeptics.
Nvidia CEO Jensen Huang remains optimistic about AI’s future, envisioning its widespread integration across industries. He highlighted the auto industry as a prime example, predicting a future where AI-powered vehicles would continuously gather data and improve through advanced AI systems.
“Someday, there will be a billion cars on the road and every single one of those cars will be robotic cars,” Huang stated. “And they’ll all be collecting data, and we’ll be improving them using an AI factory.”
