Nvidia(US:NVDA) The Motley Foolยท2025-02-28 09:15Core Insights - Nvidia continues to outperform earnings expectations, driven by its leadership in the rapidly growing artificial intelligence (AI) market, projected to grow from $200 billion to $1 trillion by the end of the decade [1][13] - The company reported a 78% increase in fourth-quarter revenue to a record $39 billion and a 114% increase in full-year revenue to $130 billion, with a forecast of $43 billion for the current quarter, representing a 65% year-over-year increase [2] Group 1 - The launch of the new Blackwell architecture has exceeded Nvidia's expectations, generating $11 billion in revenue during its fastest production ramp ever [4][5] - Demand for the Blackwell platform is described as "extraordinary," with its capabilities expected to significantly enhance Nvidia's growth in the future [6] - Nvidia's gross margin has declined to 73% due to the complexities of launching Blackwell, with expectations of further narrowing to about 70% in the current quarter, although this is seen as a temporary dip [7][8] Group 2 - Nvidia has a clear understanding of its customers' future plans, with forecasts indicating strong capital investments in data centers that will utilize Nvidia's GPUs for accelerated computing and reasoning AI [11] - The company is positioned to support the next phases of AI growth, including agentic AI and sovereign AI, which will further drive demand for its products [12] - Overall, Nvidia's growth trajectory remains strong, making it a solid long-term investment in the AI sector [13]