David Edwards
Driven by the soaring demand for AI-focused microchips, chipmaker giant Nvidia (NVDA) has once again exceeded Wall Street’s forecasts, citing a 78% year-over-year growth in revenue.
In its fiscal Q4 2025 earnings report, released on Feb. 26, Nvidia announced $39.3 billion in revenue for the quarter ended Jan. 26—a 12% rise from the previous quarter. Analysts at Zacks Investment Research had estimated revenues of $37.72 billion, meaning Nvidia significantly outperformed expectations. Earnings per share (EPS) reached $0.89, exceeding the projected $0.84 EPS.
Demand for AI Chips Fuels Record Growth
Jensen Huang, the company’s founder and CEO, credited the company’s remarkable success to a “amazing” increase in demand for their Blackwell microchips, which are used in high-performance computing, AI, and machine learning.
“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,” said Huang.
With over 90% of total revenues, Nvidia’s data center segment—which is essential to AI-driven workloads—generated $35.6 billion, a 93% increase over the previous year.
AI Competition Causes Volatility in Nvidia’s Stock
Nvidia’s stock price (NVDA) finished at $131.28 on February 26th, up 3.67%. Google Finance reports that shares dropped 1.49% to $129.32 in after-hours trading.
Even with this impressive performance, Nvidia’s stock is still below its peak of over $147 per share in November 2024.
On January 27, Nvidia suffered the biggest one-day value loss in the history of the U.S. stock market, plunging around 17%, wiping out roughly $600 billion in market capitalization. This followed investor concerns after Chinese AI company DeepSeek unveiled a model that was said to compete with OpenAI’s ChatGPT.
AI Development Outside of Nvidia
The development of AI is being accelerated by other American companies besides Nvidia. Microsoft announced last September its plans to establish two AI research hubs in Abu Dhabi, as part of a broader push into AI infrastructure.
Meanwhile, Bitcoin mining companies are increasingly pivoting toward AI. Some firms are converting their mining operations to power compute-intensive large language models, seeking alternative revenue streams beyond cryptocurrency mining.
Bitcoin and AI: A New Market Dynamic?
Research firm 10x Research suggested in a Jan. 27 report that Nvidia’s valuation dip could have bullish implications for Bitcoin. The Federal Reserve may adopt a more accommodating monetary policy if AI expenditure slows and reduces inflation.
Moreover, asset management VanEck forecasted in August 2024 that if publicly traded Bitcoin mining enterprises move 20% of their energy capacity toward AI and high-performance computing by 2027, they could create an additional $13.9 billion in yearly revenues over the next 13 years.
As the race for AI dominance accelerates, Nvidia is at the forefront, but market volatility highlights the broader trends in AI investment and competition.
