Nvidia's Data Center Revenue Soars: Jensen Huang Leads AI Revolution

Nvidia Corp. (NASDAQ: NVDA) has delivered impressive results in its fourth-quarter earnings report, showcasing significant growth under the leadership of Jensen Huang. The company managed to more than double its data center revenue for the entire year, achieving record quarterly growth that clearly outpaces its competitors.

Key Achievements: Nvidia's data center revenue surged to a remarkable $35.6 billion in the fourth quarter. This figure represents a staggering 93.5% increase compared to the same period last year and a solid 15.6% rise from the previous quarter's $30.8 billion.

For the fiscal year 2024, Nvidia's total revenue reached nearly $47.5 billion, which is projected to grow more than twofold to $115.3 billion in fiscal year 2025.

In comparison, competitors such as Intel Corp. (NASDAQ: INTC) and Advanced Micro Devices Inc. (NASDAQ: AMD) also saw growth in their revenue, albeit at a much slower pace. Notably, Intel's revenue experienced a decline from the same quarter last year.

Period	Nvidia	Intel	AMD
Q1 2022	$3.8B	$6.1B	$1.3B
Q2 2022	$3.8B	$4.7B	$1.5B
Q3 2022	$3.8B	$4.4B	$1.6B
Q4 2022	$3.6B	$4.6B	$1.7B
Q1 2023	$4.3B	$3.7B	$1.3B
Q2 2023	$10.3B	$4.0B	$1.3B
Q3 2023	$14.5B	$3.8B	$1.6B
Q4 2023	$18.4B	$4B	$2.3B
Q1 2024	$22.6B	$3B	$2.3B
Q2 2024	$26.3B	$3B	$2.8B
Q3 2024	$30.8B	$3.3B	$3.5B
Q4 2024	$35.6B	$3.4B	$3.9B

During the earnings call, Huang emphasized, "Data centers will increasingly become AI factories. Every company will either rent or operate their own." He also expressed optimism for the future, anticipating sequential growth in both compute and networking.

According to Wedbush analyst Dan Ives, Nvidia is solidifying its position in the ongoing "AI Revolution." A report shared on social media detailed that Nvidia's data center revenue has skyrocketed from just $1 billion in January 2020 to $35.6 billion in January 2025, marking a phenomenal growth of 3460% over five years.

Importance of the Growth: Nvidia's ascent is significant as Intel had previously dominated the data center market in 2022 but faced challenges in 2023 as Nvidia surged ahead. AMD witnessed a slower growth trend in 2022 and early 2023 but began to gain momentum towards the end of 2023.

Intel's interim CEO, Michelle Holthaus, acknowledged during their fourth-quarter earnings call that the data center market is crucial for the company. However, she expressed dissatisfaction with their current position, stating, "We're not yet participating in the cloud-based AI data center market in a meaningful way." She further noted that they are applying lessons learned to improve their offerings.

Meanwhile, AMD reported a significant year-over-year increase of 69% in its fourth-quarter data center revenue, hitting a record $3.9 billion. CEO Lisa Su anticipates continued strong double-digit growth in this sector as demand for server and GPU products remains high.

Market Activity: Following the earnings call, Nvidia's stock rose by 3.67% but fell by 1.49% in after-hours trading. This performance still exceeded the 0.24% rise observed in the Invesco QQQ Trust, which tracks the Nasdaq 100 index. Over the year, Nvidia's stock is down 5.08% year-to-date but has increased by 66.81% compared to the previous year. Analysts maintain a positive outlook, with an average price target of $172.28 for Nvidia's stock, reflecting a "buy" rating. Estimates vary widely, ranging from $120 to $220, with recent ratings suggesting a potential upside of 52.59%.

In Summary: Nvidia's remarkable growth in its data center business showcases its leadership in the AI sector, setting a new standard for competitors.

Nvidia, DataCenter, Growth