Facing recent concerns about the "AI bubble," chip giant Nvidia delivered a strong performance on Wednesday. The financial report showed that Nvidia not only continued its years-long tradition of exceeding Wall Street expectations but also demonstrated its dominant position in the data center sector with impressive profit performance.

According to the financial data, Nvidia's total revenue for the quarter reached $68.13 billion, exceeding analysts' forecast of $66.2 billion; earnings per share were $1.62, also surpassing market expectations. The most closely watched data center business saw a 75% year-over-year increase, reaching $62.3 billion. This core business growth supported the company's annual net profit of $120 billion, further solidifying its position as the world's most valuable listed company.

AIbase learned that Nvidia CEO Jensen Huang reiterated during the earnings call that global customers are racing to invest in AI computing, which is the "factory" driving future growth. Although the market had experienced fluctuations due to software stock sell-offs and layoff concerns, Nvidia's results undoubtedly gave investors a strong confidence boost. Notably, while there have been changes in Nvidia's partnership with OpenAI—its previously announced $100 billion investment plan was canceled, replaced by a $3 billion investment plan—their close partnership remains intact, according to Huang.

Despite its stellar performance, some analysts remain cautious about the "internal cycle" investment model in the AI industry. Currently, Nvidia's stock price first rose and then stabilized in after-hours trading. As computing power and revenue growth become deeply intertwined, Nvidia has become the de facto infrastructure of this "AI industrial revolution."

Summary:

  • 📈 Comprehensive Dominance: Nvidia's quarterly revenue and profit both exceeded expectations again, with an annual profit of $120 billion, showcasing a strong profit moat.

  • 🏭 Data Center Surge: Benefiting from the surge in AI infrastructure investment, the data center business grew by 75% year-over-year, becoming the company's most critical revenue driver.

  • 🤝 Partnership Reconfiguration: Confirming a $3 billion investment in OpenAI, deep capital ties ensure continuous demand for chips in downstream markets.