Nvidia Reports Record Quarterly Earnings Despite Heavy Capex

Chipmaker and the world’s most valuable company, Nvidia, posted record-breaking earnings in its latest quarterly results on Wednesday, driven by surging global demand for AI computing power.

“The demand for tokens worldwide has grown completely exponential,” CEO Jensen Huang told analysts on the earnings call. “We’re seeing it across the board — even our six-year-old GPUs running in the cloud are fully utilized, and pricing continues to rise.”

The company generated $68 billion in revenue for the quarter, marking a 73% year-on-year increase. Of that total, $62 billion came from Nvidia’s data center segment, underscoring the continued boom in AI infrastructure spending.

For the first time, Nvidia provided a breakdown of its data center revenue, reporting $51 billion from compute products — primarily GPUs — and $11 billion from networking technologies such as NVLink. For the full fiscal year, the company recorded $215 billion in total revenue.

As in recent quarters, Nvidia reported no revenue from chip exports to China, despite the U.S. government’s decision to ease certain export restrictions. “Although small quantities of H200 products intended for China-based customers received approval from U.S. authorities, they have not yet contributed any revenue, and we remain uncertain about whether imports into China will ultimately be permitted,” said Chief Financial Officer Colette Kress.

Kress also noted rising competition within China, referencing the recent IPO of Moore Threads in December. “Chinese competitors, strengthened by new capital from public listings, are advancing rapidly and could potentially reshape the global AI industry landscape over the long term,” she said.

During the call, Huang further addressed Nvidia’s anticipated $30 billion investment in OpenAI, offering updates on the company’s strategic positioning as it continues to expand its footprint across the AI ecosystem.