Nvidia Rides On AI Boom With 80% Jump In Net Income In Q4 2024
Nvidia (NASDAQ: NVDA) reported its Q4 and full-year 2024 financials, with quarterly revenue of $39.3 billion—a 78% leap from $22.1 billion a year ago and a 12% boost over $35.1 billion in the previous quarter.
On a full-year basis, Nvidia posted $130.5 billion in total revenue, surging 114% from fiscal 2024. Gross margin for Q4 came in at 73.0%—a dip from 76.0% a year earlier. But for the full year, gross margin jumped to 75.0% in 2024 from 72.7% in 2023.
The lion share of the quarterly revenue came from its Data Center segment, which pulled in a record $35.6 billion this quarter—16% above the previous quarter and 93% higher than the same period last year. For the fiscal year, Data Center revenue soared by 142% to $115.2 billion. The popularity of Blackwell AI supercomputers has continued to drive sales, as corporate and cloud clients scramble to secure the high-performance chips essential for large-scale AI training and inference.
Major cloud providers including Amazon Web Services, Microsoft Azure , and Oracle Cloud are adopting Nvidia’s GB200 systems to tackle surging AI workloads.
Compared to the same period last year, Q4 operating expenses jumped 48% to $4.7 billion, while full-year operating expenses increased by 45%. Research and development stood out, reflecting the cost of staying ahead in a rapidly evolving AI landscape, reaching $3.7 billion for the quarter, up from $2.5 billion a year ago.
The quarter’s net income climbed to $22.1 billion, an 80% increase from the same period in the previous year. Diluted earnings per share hit $0.89, up 82% year-over-year and 14% compared to the prior quarter. GAAP earnings per share for the year climbed 147% to $2.94.
Nvidia’s balance sheet highlights both its success and the challenges of rapid expansion. The company’s cash, equivalents, and marketable securities jumped to $43.2 billion—up from $26.0 billion a year ago—reflecting strong profitability.
Operating cash flow for the quarter hit $16.6 billion, while free cash flow reached $15.5 billion—a strong gain compared to the $11.2 billion in the same quarter last year.
Nvidia projects revenue of $43.0 billion for the first quarter of fiscal 2026, signaling a continued upward trajectory. Gross margins are forecast around 70.6% on a GAAP basis, a slight decrease from Q4’s level but still exceptionally high for the semiconductor industry. Operating expenses are expected to climb further, reaching about $5.2 billion on a GAAP basis, due primarily to ongoing R&D investments.
NVIDIA last traded at $131.28 on the NASDAQ.
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