Nvidia reported more than 2X year-on-year growth in revenue and profit for FY25 in its earnings released on February 26, just edging past Wall Street estimates. However, the market’s reaction was lukewarm as investors had been expecting yet another spectacular blowout, given the semiconductor giant’s explosive growth over the past year.
While Nvidia’s performance remains unparalleled, expectations are sky-high for the AI chipmaker as the AI revolution has turned it into a financial powerhouse which has led to the company seeing its market capitalization skyrocket to a staggering $3.215 trillion as of February 27, 2025, according to CompaniesMarketCap. To put that into perspective, Nvidia added as much value in a year as Walmart, Visa, and Mastercard’s m-cap combined!
Nvidia’s Q4 Earnings 2025 Breakdown:
Nvidia’s latest earnings report edged past expectations, fueled by explosive growth in AI and data center demand. Nvidia’s revenue in FY25 was larger than Starbucks’ entire market value, and its profit is higher than the market cap of Colgate. reshaping the technology landscape. Here’s a quick look at the numbers from FY25:
| Revenue | Profit | |
| FY25 | $130.5B | $73B |
| YoY Change | 114% | 145% |
Source: Nvidia earnings report
Where is Nvidia’s money coming from?
Nvidia’s data center business is the undisputed cash cow, making up nearly 90% of the total revenue yet growing by a mind-blowing 142% YoY. This division alone raked in $115 billion in FY25, cementing Nvidia as one of the leaders of AI infrastructure worldwide.
Despite some challenges in the gaming segment, Nvidia is setting the pace in AI computing, powering 75% of the world’s top supercomputers and playing a crucial role in the $500 billion Stargate Project, an initiative to build AI infrastructure in the US.
Here’s a look at Nvidia's business segments performed:
| Data Center | Gaming | Automotive | Pro Visualization, OEM & Other | |
| Revenue (YoY Growth) | $115B (142%) | $11.35B (9%) | $1.7B (55%) | $2.27B (24%) |
| % of Total Revenue | 88.3% | 8.7% | 1.3% | 1.7% |
Source: Company filing
Nvidia: Key Wins and Strategic Moves
- Data Center Dominance: Nvidia is flourishing in the data center space as 75% of the systems on the TOP500 list of the world’s most powerful supercomputers are powered by NVIDIA technologies, according to the company's earnings report. It also continues to be the preferred AI infrastructure provider for cloud service giants like AWS, Google Cloud, Microsoft Azure, and Oracle Cloud. These giants contributed to half of the data center revenue in FY25. Going forward, they will be bringing NVIDIA GB200 superchip systems to cloud regions around the world to meet surging customer demand for AI. Nvidia has also announced partnerships with Verizon for enterprise AI applications and Siemens Healthineers for medical imaging AI.
- AI and Gaming Innovations: Despite a 22% QoQ decline in gaming revenue, Nvidia showed progress in AI-driven gaming hardware given that its gaming revenue jumped 9% on an annual basis in FY24. The launch of the GeForce RTX 5090 and 5080 graphics cards and DLSS 4 technology promises up to 2x performance improvements for gamers and developers, the company said.
- Automotive and Robotics Expansion: Nvidia’s automotive division's revenue grew 55% YoY in FY2, driven by Toyota’s decision to build next-gen vehicles on the Nvidia DRIVE AGX Orin platform and partnerships with Hyundai Motor Group for AI-powered vehicles and robotics.
Betting on Itself: Nvidia’s Stock Buyback Strategy
Nvidia returned $34.5B to investors in 2024, but 97% of that meaning a total of $33.7B) went to stock buybacks, not dividends. By reducing share supply, Nvidia is making its stock even more valuable.
Think of it like a class with 10 students sharing a cake. If one student leaves, the remaining 9 get bigger slices without needing a bigger cake. In the same way, when Nvidia buys back shares, fewer shares remain in the market, making each share more valuable.
Note that while Nvidia has been aggressively buying back its stock, CEO Jensen Huang sold 5.74 million shares in 2024.
Nvidia’s Q1FY26 Guidance: More Growth Ahead?
Nvidia’s earnings call revealed that the company expects revenue of $43 billion in Q1FY26, a 65.1% YoY increase. Expenses are projected at $5.2 billion, marking a 48.6% increase. However, the company expects to pocket 71 cents of every dollar after production costs as gross margin.
Despite the Street’s muted reaction, the outlook remains robust. With its dominance in AI computing, strategic partnerships, and continued innovation, Nvidia expects to remain on track for another massive year.
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