Nvidia has reported a dramatic increase in its financial performance, with total sales reaching $68.1 billion for its fiscal fourth quarter ending January 25, representing a 73% year-over-year growth. The company’s revenue for the full fiscal year also surged to $215.9 billion, marking a 65% increase compared to the previous year. A significant driver of this growth has been substantial spending from cloud providers, notably contributing $62.3 billion from Nvidia’s data center division.
The company’s free cash flow reached $34.9 billion in the fourth quarter, totaling $96.6 billion for the entire fiscal year, a notable rise from $22.1 billion and $60.7 billion in the same periods last year. Nvidia's adjusted gross margin exceeded 75%, highlighting its strong pricing strategy amid the rollout of its new Blackwell architecture.
Looking ahead, Nvidia anticipates approximately $78 billion in sales for the first quarter of the upcoming fiscal year. CEO Jensen Huang emphasized the link between server investments and the demand for real-time AI services during the earnings call, suggesting that the growth of generative AI technology will be vital for revenue enhancement. However, the current stock valuation of about 41 times earnings raises concerns, with analysts projecting it to decrease to 24 times over the next year, reflecting the cyclical nature of the semiconductor industry.