Blackwell AI chip rollout fuels Nvidia’s revenue surge

Nvidia has forecast strong growth for the first quarter, reinforcing confidence in the booming demand for AI chips. Orders for the company’s new Blackwell semiconductors were described as ‘amazing’, with CEO Jensen Huang stating that AI is advancing rapidly.

Investors had raised concerns last month after Chinese startup DeepSeek claimed to have developed cost-efficient AI models, but Nvidia’s results eased doubts.

Shares initially rose before fluctuating in extended trading, continuing a trend that has seen Nvidia’s stock surge over 400% in two years. The company generated $11 billion in revenue from Blackwell-related products in the fourth quarter, accounting for around half of its total data centre revenue.

Analysts had expressed scepticism about the transition to Blackwell and competition from DeepSeek, but the latest figures reassured investors.

Margins remain under pressure, with Nvidia forecasting a slight drop to 71% in the first quarter, below Wall Street estimates. Chief Financial Officer Colette Kress expects a recovery later in the year as production scales up and costs decline.

Despite some concerns about oversupply in AI infrastructure, Chinese firms have reportedly increased orders for Nvidia’s H20 AI chip, further supporting demand.

Nvidia’s fourth-quarter revenue rose 78% to $39.3 billion, surpassing expectations. Data centre sales surged 93% to $35.6 billion, continuing strong growth from the previous quarter.

Investors remain focused on Nvidia’s ability to maintain momentum in a competitive AI landscape, particularly as tech giants like Microsoft and Meta commit substantial investments to AI expansion.

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