Nvidia sales spike on AI demand

Core Insights - Nvidia forecasts first-quarter revenue of $43 billion, exceeding market estimates of $41.78 billion, driven by strong demand for AI chips [4][5] - The company anticipates a decline in gross margins to 71%, below Wall Street's forecast of 72.2%, due to efforts in ramping up production of Blackwell AI chips [2] - Nvidia's shares have increased over 400% in the past two years, benefiting from the AI stock rally [1] Financial Performance - Nvidia reported a fourth-quarter revenue growth of 78% to $39.3 billion, surpassing estimates of $38.04 billion [7] - Adjusted per-share profit for the fourth quarter was 89 cents, exceeding the expected 84 cents [7] Market Dynamics - Demand for Nvidia's advanced chips is rising as companies invest heavily in generative AI technologies [5] - Nvidia's positive forecast helps mitigate concerns about a potential slowdown in hardware spending, which arose after claims from Chinese AI startup DeepSeek regarding competitive AI models [6]