Nvidia(US:NVDA)2025-03-04 16:26Financial Data and Key Metrics Changes - Q4 revenue reached $39.3 billion, up 12% sequentially and 78% year on year, exceeding the outlook of $37.5 billion [8] - Fiscal 2025 revenue totaled $130.5 billion, an increase of 114% compared to the previous year [9] - GAAP gross margins were 73%, with non-GAAP gross margins at 73.5%, down sequentially as expected due to the initial deliveries of the Blackwell architecture [38] Business Line Data and Key Metrics Changes - Data center revenue for fiscal 2025 was $115.2 billion, more than doubling from the prior year, with Q4 data center revenue at a record $35.6 billion, up 16% sequentially and 93% year on year [9][10] - Consumer Internet revenue grew 3x year on year, driven by generative AI and deep learning use cases [20] - Automotive revenue reached a record $570 million, up 27% sequentially and 103% year on year, with expectations to grow to approximately $5 billion in the fiscal year [25][36] Market Data and Key Metrics Changes - Sequential growth in data center revenue was strongest in the US, driven by the initial ramp of Blackwell [27] - Data center sales in China remained well below previous levels due to export controls, with expectations to maintain current percentages [28][96] - Networking revenue declined 3% sequentially, but the transition to larger NVLink systems is expected to drive future growth [28][29] Company Strategy and Development Direction - The company is focused on expediting the manufacturing of Blackwell systems to meet strong demand, with expectations for gross margins to improve to the mid-seventies later in the year [39][66] - Blackwell architecture is designed to support the entire AI market, addressing pretraining, post-training, and inference needs [17][137] - The company is optimistic about the future of AI, emphasizing the transition from traditional computing to AI-driven architectures [101][102] Management's Comments on Operating Environment and Future Outlook - Management highlighted the extraordinary demand for Blackwell and the evolution of AI from perception to reasoning, indicating a significant increase in compute requirements for reasoning models [134] - The company sees strong near-term, mid-term, and long-term signals for growth, driven by capital investments in data centers and the increasing integration of AI across various industries [70][72] - Management expressed confidence in the sustainability of strong demand, supported by ongoing innovations and the vibrant startup ecosystem in AI [68][70] Other Important Information - The company returned $8.1 billion to shareholders in Q4 through share repurchases and cash dividends [40] - Upcoming events include participation in the TD Cowen Healthcare Conference and the Morgan Stanley Technology, Media, and Telecom Conference [44] Q&A Session Summary Question: What does the increasing blurring between training and inference mean for NVIDIA's future? - Management discussed the scaling laws in AI, emphasizing the growing compute needs for post-training and reasoning models, indicating a shift in architecture design to accommodate these demands [50][56] Question: Where is NVIDIA in terms of ramping up the Blackwell systems? - Management confirmed successful ramping of Blackwell systems, with significant revenue generated and ongoing efforts to meet high customer demand [60][62] Question: Can you confirm if Q1 is the bottom for gross margins? - Management indicated that gross margins will be in the low seventies during the Blackwell ramp, with expectations to improve to the mid-seventies later in the year [65][66] Question: How do you see the balance between custom ASICs and merchant GPUs? - Management highlighted the general-purpose nature of NVIDIA's architecture, which supports a wide range of AI models and applications, making it more versatile than custom ASICs [84][86] Question: How does the company view the growth of enterprise consumption compared to hyperscalers? - Management expressed confidence that enterprise consumption will grow significantly, driven by the need for AI in various industrial applications [111][112]