When Nvidia lost $ 600 billion in market value in a single day last month, it was because some investors were afraid of the future of artificial intelligence chipmaker. Deepseek, a Chinese start, said he had made his systems with a small portion of the chips he used by other companies, and with a small part of the cost.
On Wednesday, Nvidia showed that those fears were overloaded, though the sharp pace of growth slows down. The company, a bell for him, said that purchases of her chips he raised her total revenue by 78 percent from a year ago to $ 39.33 billion in the three months that ended in January. Profit increased 80 percent to $ 22.09 billion.
In the previous quarters, Nvidia reported that sales and profits had doubled. But the continuation of the delivery of those types of profits has become more difficult as its sales and profits increase. (For a business like Nvidia, it is common for the growth level to slow down after a phenomenal period to increase, a phenomenon known as the law of a large number.)
Nvidia quarterly results exceeded Wall Street analysts’ expectations of $ 38.32 billion in sale and $ 21.08 billion in profit. The company predicted that revenues in the current quarter would increase 65 percent from a year ago to $ 43 billion, a slowdown from the previous quarter, but about $ 1 billion more than Wall Street had predicted.
The shares in Nvidia were almost flat in the post -time trade, after a 3.7 percent profit on Wednesday. The second most valuable company in the world remains publicly traded after Apple.
The Nvidia business has been driven by the non -stop expenses of larger technology enterprises for it. After pouring tens of billions of dollars in new infrastructure last year, Amazon, Microsoft, Alphabe and Meta have said they will spend each $ 65 billion up to $ 100 billion or more this year.
Most of this money will flow directly to Nvidia. The company, according to some estimates, controls 90 percent of the market for graphic processing units, or GPUs, those power systems. She is drawing a new, more powerful series of chips he known as Blackwell and loads $ 60,000 to $ 70,000 for a signature chip. Blackwell contributed $ 11 billion on sale during the quarter.
How long will the construction of the data centers have been a question since the beginning of the boom of it. Deepseek challenged a consensus of the technology industry that to build larger and better systems of it, companies will need to build larger and more powerful data centers. She began fear that companies could back up again in their Nvidia expenses.
Since then, a new consensus has emerged that Nvidia will continue to benefit because it will become affordable for more companies to develop systems. An expanded field of businesses he would create more clients for expensive Nvidia chips, no less, as he was initially scared.
Nvidia said the data center income, which includes the sale of high -performance chips, cables and computing, increased 93 percent to $ 35.58 billion in the quarter a year earlier.
“No one is supporting their commitment to build a data centers and the power to generate more electricity for those data centers,” said Brian Mulberry, customer portfolio manager at Zacks Investment Management, a financial firm that traces Nvidia. “Everyone is still competitive.”
Although Nvidia has returned since the end of January, concerns about the database spending continue to overthrow the shares. The shares dropped nearly 6 percent earlier this week after Wall Street analysts reported that Microsoft had canceled some database contracts. Microsoft did not respond to requests for comment.
Jensen Huang, Nvidia’s chief executive, said in a call with analysts on Wednesday that the company would benefit as businesses changed the way they developed because its Blackwell chips were more powerful and comprehensive than their predecessor. He also has visibility in the amount of money spent in the database, which he said will increase while companies introduced new tools such as agents who can autonomously perform tasks such as online purchases.
“The other wave is coming,” said Mr. Huang. He added, “We are at the center of this development, and we can see a great activity that is happening.”
“We have successfully increased the massive production of Blackwell’s super computers, reaching billions of dollars in sale in his first trimester. He’s advancing at the speed of light.”
Nvidia also continues to face geopolitical challenges. The Biden administration inhibited the sale of chips in China and introduced a rule to catch the sales of his chips in more than 100 seats. Howard Lutnick, Secretary of Trade of Trump Administration, told Congress in his confirmation, hearing that technology companies, including Nvidia, “should stop to help” China.
Since the US government began to limit chip exports, Nvidia sales in China have decreased half to about 15 percent of total revenue. The company said it did not expect sales in China to withdraw.
At the end of last month, Mr. Huang visited the White House to discuss he and the semiconductors with President Trump. Mr. Trump told reporters later that he could not say if he would stop the sales of Nvidia chips in China more. He has also threatened tariffs for semiconductors, including Nvidia chips made in Taiwan.
Colette Kress, Nvidia’s chief of finance, said the company was monitoring fees. “Next to an unknown until we find out what is the US government plan, as its time, where it is and how much it is,” she said. “We’re waiting.”