Jensen Huang Says Nvidia's "Off to the Races." Here's What Could Happen Next.

Core Viewpoint - Nvidia has experienced significant revenue growth, raising concerns about sustainability, but recent earnings reports indicate continued strong demand for AI products and services, suggesting ongoing growth potential [1][2][3]. Financial Performance - Nvidia's revenue reached a record $130 billion in the latest fiscal year, with a 69% increase in quarterly revenue to over $44 billion, and data center revenue surged 73% to $39 billion [5][7]. - Diluted earnings per share, excluding a charge related to export restrictions, were reported at $0.96 [7]. Market Dynamics - The company faced challenges due to U.S. export restrictions on its H20 chips to China, resulting in a charge of $5.5 billion, which was later reduced to $4.5 billion [6]. - Despite these headwinds, Nvidia continues to outperform analysts' revenue and profit estimates [6]. Growth Outlook - CEO Jensen Huang indicated that Nvidia is entering a "powerful new wave of growth," with multiple significant growth engines in AI [8]. - The company reported a "sharp jump" in demand for inference, with its latest platform, Blackwell, achieving a 30x increase in inference throughput [9]. Future Projections - Nvidia anticipates a 50% year-over-year revenue increase in the second quarter, projecting revenue of about $45 billion [11]. - Ongoing innovation in the AI chip market is expected to maintain Nvidia's dominant position and support further growth as AI adoption expands across industries [11][12].