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Nvidia's growth surges with Vera Rubin market launch
In its earnings report, Nvidia provided first-quarter guidance that exceeded expectations
Nvidia has just announced its 11th consecutive quarter of revenue growth exceeding 55%, as leading tech firms consistently purchase its advanced AI chips.
Now the most valuable public corporation globally, its growth is once again accelerating.
In the earnings report released on Wednesday, Nvidia forecasted a quarterly year-over-year revenue increase of approximately 77%, reaching around $78 billion.
This would represent the quickest growth rate since the quarter concluding in January 2025, when growth was marginally higher at 78%. This outlook surpassed the $72.6 billion analysts’ average prediction, as per LSEG.
Revenue for the fourth quarter increased by 73%, also overtaking projections, which was preceded by a 62% rise in the previous quarter.
Nvidia's data centre division, which houses its AI graphics processing units, now makes up over 91% of the company's sales.
The chipmaker's positive outlook comes as it boosts production of Vera Rubin, its advanced rack-scale system designed for AI, which is set to replace Grace Blackwell.
Nvidia asserts that the system's 72 cutting-edge Rubin graphics processing units (GPUs) will provide ten times higher performance per watt compared to current models.
Colette Kress, the finance chief, mentioned during the earnings call post-report that the company had dispatched its "initial Vera Rubin samples to clients earlier this week," adding that Nvidia anticipates every model developer and cloud service provider will eventually adopt the system.
She indicated the company now anticipates growth this year will surpass previous projections which envisioned a $500 billion revenue potential between Blackwell and Rubin.
"We are assured that we possess the necessary inventory and supply agreements to fulfill forthcoming demand, extending shipments into calendar 2027," Kress stated.
Nvidia's shares showed minimal change in after-hours trading following an initial rise, reflecting the high expectations investors hold for the company, currently valued at nearly $5 trillion due to its dominance in AI processors.