NVIDIA SALES SURGE IN THE FOURTH QUARTER ON DEMAND FOR AI CHIPS

Nvidia on Wednesday reported a surge in fourth-quarter profit and sales as demand for its specialized Blackwell chips, which power artificial intelligence systems, continued to grow, sending the company's stock higher after hours.

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For the three months that ended Jan. 26, the tech giant based in Santa Clara, California, posted revenue of $39.3 billion, up 12% from the previous quarter and 78% from one year ago. Adjusted for one-time items, it earned 89 cents a share.

"Demand for Blackwell is amazing as reasoning AI adds another scaling law - increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter," Nvidia Founder Jensen Huang said in a statement.

Nvidia has ramped up the massive-scale production of Blackwell AI supercomputers, Huang said, "achieving billions of dollars in sales in its first quarter."

"AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries,” he said.

Wednesday's earnings report topped Wall Street expectations. Analysts had been expecting adjusted earnings of 85 cents a share on revenue of $38.1 billion, according to FactSet. Nvidia reported net income of $22.06 billion in the fourth quarter, beating analysts' predictions of $19.57 billion. The tech giant expected sales to continue to grow, forecasting revenue of around $43 billion for the first quarter of fiscal 2026.