Chipmaker Nvidia reported record earnings on the heels of AI factory adoption and integration of the technology in all digital services.
Nvidia reported data center revenue of $35.6 billion, up 93% year over year, while it posted revenue of $39.3 billion, up 78% YoY, according to its earnings report for the fourth quarter of fiscal 2025 published on Feb. 26.
“Data centers will increasingly become AI factories, and every company will have either renting or self-operated” AI factories, Chief Executive Jensen Huang said during the company’s earnings call.
Increased data center adoption is being driven by increased AI adoption by industries including automotive, health care and financial services, Huang said, adding that eventually “every fintech company will” use AI in its services.
According to Nvidia, its AI models are being used by:
- Nearly 1 billion knowledge workers as AI agents; and
- Nearly 30 million software developers for writing code.
In addition, nearly 678 billion credit card transactions were screened for fraud using AI in Q4, the company said.
THE BIG PICTURE: Nvidia is earmarking most of its capital expenditure for 2025 to develop its AI factories, Huang said without specifying an exact amount.
Apple, Google, Microsoft and Meta will collectively spend $302 billion in 2025 on AI infrastructure, up 35% YoY, according to a UBS Equities report published today.
“Demand for computing resources for clouds and data centers is only increasing,” Luke Penca, executive director at consultancy Capco Institute, told Bank Automation News. “A lot of that secular demand is driven now by AI.”
Big banks’ AI spend will continue to rise in tandem with big tech company expenditures, Vincent Gusdorf, senior vice president – digital economy at Moody’s, told BAN.
BY THE NUMBERS: In its fiscal Q4, which ended Jan. 26, Nvidia reported:
- Net income of $22 billion, up 72% YoY;
- Gross profit of $28.7 billion, up 71.1% YoY; and
- Gaming revenue of $2.5 billion, down 11% YoY.
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