Nvidia Earnings Call, 5/28 Analysis

Nvidia, the leading AI technology company in the world, has released its long-awaited earnings report on market after-hours Wednesday.

Nvidia reported its earnings per share to be at $0.81 with a total revenue of $44.1 billion, a massive overperformance compared to what investors anticipated, which was roughly $0.93 EPS and $43.3 billion in revenue. Nvidia's data center segment saw the largest point of improvement in the company structure as a whole. Its earnings were $39.1 billion, up from the $22.5 billion measured last year yet behind investors' predictions of around $39.2 billion. Yet, the underperformance here is very marginal.

In addition, full-year revenue rose to $130.5 billion, a 114% improvement from the previous year.

"Our breakthrough Blackwell NVL72 AI supercomputer — a 'thinking machine' designed for reasoning— is now in full-scale production across system makers and cloud service providers," stated Jensen Huang, CEO of Nvidia. "Global demand for Nvidia's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation." (as stated on Nvidia's website)

As stated by Huang and exemplified by the data, Nvidia has been successful so far in its sales pitch of its AI-powered Blackwell chip series. Other tech companies, from Broadcom to Apple, have released systems of their own to tackle the tight grip Nvidia has on the chip market, but this data shows that Nvidia is holding off competition very well. In fact, while Nvidia is growing in sales/revenue, many of its Mag. 7 competitors like Amazon have experienced huge losses in Q1 of 2025 as they grapple the dynamic economic environment of today: tariffs, trade wars, and foreign competition. Nvidia has proven resilient, with its reputation-focused marketing allowing it to sell high quantities of product with high profit margins compared to rival chipmakers.