Nvidia Posts Record Q4 as Jensen Declares ‘Compute Equals Revenues' in AI Era

Core Insights - Nvidia reported fourth-quarter revenue of $68 billion, a 73% increase year-over-year, driven by strong demand for accelerated computing across various sectors [1][12] - Data center revenue reached $62 billion, up 75% year-over-year and 22% sequentially, contributing to a full-year data center revenue of $194 billion, a 68% increase [1][12] Demand and Market Trends - The shift towards generative and agentic artificial intelligence is driving a sustained multiyear buildout of GPU-based infrastructure [1] - AI economics increasingly relies on throughput and efficiency, with compute being directly linked to revenue generation [3] - Stronger monetization from agentic workloads supports continued investment, with faster growth observed from enterprises, AI model developers, and sovereign customers compared to hyperscalers [4][10] Ecosystem and Technology - Nvidia's ecosystem, particularly CUDA, remains a competitive advantage, enhancing performance and cost efficiency across GPU generations [5] - Sovereign AI demand surpassed $30 billion for the year as countries build national AI infrastructure [6] - The company is close to finalizing a partnership with OpenAI, with GPT-5.3 Codex already deployed on Nvidia's infrastructure [10] Future Outlook - Nvidia expects first-quarter fiscal 2027 revenue to reach approximately $78 billion [14] - The Rubin platform is on schedule for second-half availability, designed to train models with fewer GPUs and reduce inference costs [10] - The company has secured long-dated supply commitments to meet demand beyond the next several quarters [10]