Nvidia posts full-year revenues up by 114% to $130.5bn

Revenues double in one year despite China sanctions and emerging competition in datacentre AI

Nvidia has posted full revenues up by 114% to $130.5 billion in the year to the end of January 2025.

Its fourth quarter revenues, meanwhile, were up 78% compared to the same quarter last year, to $39.1 billion.

Founder and CEO Jensen Huang attributed the outstanding results to the success of the company’s AI GPUs, with demand unaffected by the sudden success of the low-cost Chinese AI DeepSeek. Nor has the company been affected by a US trade embargo, barring the sale of Nvidia’s most advanced GPUs to organisations in China.

“Demand for Blackwell is amazing as reasoning AI adds another scaling law – increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter,” said Huang.

He continued: “We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionise the largest industries.”

In addition to record annual and quarterly revenues, the company boosted its gross margin compared to full-year 2024 to 75%, and achieved a net income for fiscal 2025 of $72.9 billion on its $130.5 billion revenues.

The company’s growth has been propelled by the boom in demand for AI datacentres, principally, GPU-based servers, with the Nvidia attributing $102.2 billion of its revenues to datacentre compute, and another $12.99 billion to datacentre networking hardware. As the market leader with a 92% share, Nvidia is able to command a hefty premium for its datacentre GPUs.

Gamers, who used to comprise the bulk of Nvidia’s revenues, accounted for $11.4 billion.

However, there are signs that the company will face stiffer competition in the datacentre in the future, with its main rival in GPUs, AMD, starting to develop competitive alternatives, as well as its own ROCm software to compete with Nvidia’s CUDA software.

Intel is also in the game, developing its own Gaudi 3 GPUs for datacentre use that, it claims, will be one-and-a-half times faster than Nvidia’s H100 chip – but between 30% and 60% cheaper. Intel has also teamed up with Google, Qualcomm and others to develop their own alternative to Nvidia’s CUDA software.

After that, there is a long tail of companies all chasing Nvidia’s lead, with ARM teaming up with TSMC to produce specialist chips coming out later this year. Amazon uses its own Trainium and Inferentia chips for existing customers, alongside Nvidia’s, but passing on the cost cuts accordingly. Google and Microsoft also have their own lower-cost AI GPU offerings for cloud customers.

Other emerging competitors include Apple, Cerebras, Groq, Meta and Tesla. Even OpenAI has reportedly opened discussions with Broadcom on an AI chip development.

In response to the trade embargo, China’s State Administration for Market Regulation (SAMR) opened an anti-trust investigation into the company’s 2020 acquisition of Israeli firm Mellanox Technologies, which had been approved by regulators in China in that same year.

Commenting on the figures, Kate Leaman, chief market analyst at AvaTrade, said Nvidia has momentum, but there are hurdles ahead. The success of DeepSeek shows the demand for advanced hardware may he less that thought, and Microsoft’s cancellation of data centre contracts suggest a slowing in the AI boom. There are also production issues, she said.

“The powerful new Blackwell chips are more expensive to produce, and that’s putting pressure on Nvidia’s profit margins. While revenue is soaring, analysts are keeping a close eye on whether this margin squeeze could impact the company’s long-term profitability.”

She continued: “Any sign of slowing momentum – or a shift in AI investment trends – could lead to harsh market reactions.

“For now, CEO Jensen Huang is confident that the AI revolution is only just beginning. As long as demand for high-powered computing continues to climb, Nvidia should stay ahead. However, with questions about efficiency gains and shifting tech budgets looming, we will be watching closely to see if the company can keep up its record-breaking pace.”