NVIDIA continues its extraordinary growth trajectory with Q4 FY2025 revenue reaching $39.3 billion, up 12% sequentially and 78% year-over-year. Full-year revenue soared to $130.5 billion, a 114% increase from the previous year, demonstrating the company's dominant position in the AI computing market.
The Data Center segment remains NVIDIA's powerhouse, contributing $35.6 billion (90.6% of total revenue) in Q4, growing 16% sequentially and 93% year-over-year. This concentration represents both strength and potential vulnerability, as any slowdown in AI infrastructure spending could significantly impact overall results.
Profitability metrics remain exceptional with Q4 GAAP EPS of $0.89 (82% YoY growth) and gross margins holding at approximately 71%, substantially above industry averages. This pricing power reflects NVIDIA's near-monopoly position in AI accelerators and suggests competitive pressure despite AMD's and Intel's efforts to gain market share.
The forward guidance of $43 billion for Q1 FY2026 (9.4% sequential growth) indicates robust demand continues unabated. CEO Jensen Huang's statement about Blackwell achieving "billions of dollars in sales in its first quarter" suggests the company is successfully managing the critical transition to its next-generation architecture without the delays that have plagued competitors.
While Gaming revenue declined to $2.5 billion (-22% QoQ, -11% YoY), the launch of RTX 50 Series products could reinvigorate this segment. However, Gaming now represents just 6.4% of total revenue, highlighting NVIDIA's transformation from a gaming company to an AI infrastructure provider.
Strategic partnerships with cloud giants and the $500 billion Stargate Project position NVIDIA to maintain its AI leadership. The company's expansion into Vietnam for R&D indicates efforts to diversify its talent pool and potentially navigate geopolitical risks affecting semiconductor supply chains.
