Breaking news

Nvidia’s AI Surge: Q4 Earnings, Next-Gen Chips, And A Bold Vision For The Future

Nvidia has once again outperformed expectations, riding high on the relentless demand for artificial intelligence. In its Q4 earnings report, the chipmaker delivered a stunning 78% revenue surge, with quarterly revenue hitting $39.33 billion—well above the $38.05 billion forecast. For the full fiscal year, revenue skyrocketed 114% to an impressive $130.5 billion, underscoring Nvidia’s dominant position in the AI revolution.

Looking ahead, Nvidia is projecting first-quarter revenue of around $43 billion, give or take 2%, a clear signal that the growth momentum is set to continue. A major driver behind this performance is the rapid ramp-up of Nvidia’s next-generation AI processor, Blackwell. CFO Colette Kress described the anticipated sales “ramp” for Blackwell as the fastest in the company’s history, with $11 billion already recorded in Q4—primarily led by large cloud service providers, which now account for over 90% of Nvidia’s total revenue.

Nvidia’s strategy is shifting from merely training AI to powering inference, where its chips process real-time AI applications. “Long-thinking, reasoning AI can require 100 times more compute per task compared to one-shot inferences,” Kress noted, highlighting that the vast majority of compute power currently deployed is for inference tasks. CEO Jensen Huang added that while next-generation AI models might demand millions of times the current capacity, the real challenge is in deploying the right chip—not just designing one.

Beyond AI, Nvidia continues to diversify its portfolio. The company’s data center revenue, which reached $35.6 billion—up 93% from a year ago—remains the star of its business, even as its gaming division reported a modest $2.5 billion in sales, down 11% year-over-year. Meanwhile, automotive sales climbed 103% to $570 million, and Nvidia’s networking segment contributed $3 billion, despite a slight 9% decline compared to last year.

In a show of confidence, Nvidia has returned substantial value to shareholders, repurchasing $33.7 billion in shares in fiscal 2025. This bold financial maneuver, combined with strong operational performance, sets a promising tone for Nvidia’s continued dominance in the AI space well into 2025 and beyond.

Nvidia’s robust Q4 results and ambitious forward guidance highlight a clear message: as the world leans further into AI, Nvidia is not only ready to meet that demand but to redefine the very architecture of the digital future.

European Central Bank Report Highlights Stable Inflation and Economic Outlook

Overview Of Inflation Trends

The latest European Central Bank survey shows a slight decline in median inflation expectations over the next 12 months, decreasing from 2.8% in August to 2.7% in September. Despite this minor adjustment, consumer perceptions of past 12-month inflation have held steady at 3.1% for the eighth consecutive month. Long-term projections for three- and five-year inflation remain stable at 2.5% and 2.2% respectively.

Consumer Expectations Drive Income And Spending Projections

Across the board, expectations for nominal income growth over the upcoming year have remained consistent at 1.1%. However, there is a noticeable shift in spending behavior: while perceived nominal spending growth for the past year slipped slightly to 4.9% from 5.0%, expectations for spending growth over the next 12 months rose to 3.5%. Notably, lower income groups continue to forecast marginally higher spending increases compared to their higher income counterparts.

Stability In Economic And Labour Market Outlook

Economic growth expectations are modestly pessimistic, with respondents forecasting a contraction of -1.2% over the next 12 months. Concurrently, anticipated unemployment levels remain unchanged at 10.7% a year ahead, though the outlook varies by income, with lower income households expecting unemployment rates as high as 12.7%, while higher income groups maintain expectations around 9.4%. Overall, the slight difference between current and future unemployment suggests a broadly stable labor market outlook.

Housing Market And Credit Conditions

The survey also reveals an upswing in expectations related to the housing market. Home price growth expectations have edged higher to 3.5%, and anticipated mortgage interest rates have risen modestly to 4.6%. Similar to other metrics, expectations vary by income, with lower income households expecting higher mortgage rates. In recent months, a marginal decline in reported credit tightening over the past 12 months contrasts with a renewed forecast of tighter credit conditions in the forthcoming year.

Conclusion

The ECB’s latest findings underscore the delicate balance between stable long-term economic forecasts and short-term adjustments in consumer expectations. The slight dips in inflation expectations, alongside stable perceptions of past inflation, delineate a marketplace that is both cautious and measured. As income, spending, and housing market metrics continue to evolve, these indicators provide critical insights for policymakers and investors navigating an increasingly complex economic landscape.

The Future Forbes Realty Global Properties

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter