Nvidia (NASDAQ:NVDA) $216b Revenue, 65% Growth, Still Pushing the Frontier

Rubin Targets 10x Cheaper Inference, That’s the Real Story

Nvidia delivered an exceptional quarter and a standout full-year result, which is exactly what you would expect from the biggest company in the world and the clear leader at the frontier of AI.

It is remarkable to see how far the business has come over the past five years. What began as a company best known for GPUs in gaming PCs has evolved into the backbone of modern AI infrastructure, with partnerships across many of the world’s largest companies, all competing to secure access to Nvidia’s latest chips.

For the full year, revenue reached US$216b, up 65%, while Q4 EPS rose 98% YoY. These are enormous numbers, but what stands out even more is that Nvidia is still pushing the technology curve forward rather than simply benefiting from existing demand.

Its newest chip platform, Vera Rubin, is a strong example of that. Nvidia says these new chips can deliver up to a 10x reduction in inference token costs, which is a major step forward. In simple terms, it means the cost of running AI models and continuing to iterate on them becomes materially cheaper.

That is what makes Rubin so important. It looks like the next major cost-down and efficiency leap for AI infrastructure, particularly as inference-heavy workloads become a larger share of overall demand.

Here is a quick financial summary of the results:

• Q4 revenue: $68.1bn, up 73% YoY
• Q4 Data Center revenue: $62.3bn, up 75% YoY
• Data Center share of total Q4 revenue: about 91%
• Q4 GAAP gross margin: 75.0%, up from 73.0% last year
• Q4 GAAP operating income: $44.3bn, up 84% YoY

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Growth at Scale, Operating Leverage at Full Force

Looking at the top-line result, Nvidia delivered Q4 revenue of US$68b, up 73% YoY. That is an incredibly strong growth rate at this scale and, frankly, it is a rare phenomenon in the corporate world at that scale.

The main driver was Data Center, which generated US$62b in the quarter, while full-year revenue reached US$216b. At this point, Nvidia is no longer just growing alongside a few key AI players. It is now deeply embedded across the broader AI ecosystem.

That positioning is a major strength because demand is clearly surging. At the same time, it is worth remembering that this also brings concentration risk. If demand slows, the bulk of Nvidia’s business is tied to Data Center growth, which is something investors should keep in mind.

Data Center now accounts for roughly nine-tenths of total revenue, so this is overwhelmingly an AI infrastructure story.

GPUs to AI Infrastructure Monopoly Economics

Profitability was also a standout. Gross profit reached US$51b, with margin rising to 75%, which suggests the latest chip rollouts and product iterations are continuing to command strong value and real pricing power.

That said, it is important to look at the full-year picture as well. For the year, GAAP gross margin came in at 71.1%, down from 75.0% in FY25. So while the quarter itself was very strong, the broader annual result still shows some margin dilution relative to the prior year.

That is the key balance in the result. Nvidia continues to deliver extraordinary scale, growth, and profitability, but investors should still pay attention to how concentrated the business has become around AI infrastructure and whether margins can remain at these elevated levels as the company keeps scaling.

Operating income was 44 billionup 84% that is very high operating leverage and underscores the strength of nvidias business model with profitbailty growing faster than revenue The big message here is that NVIDIA is not just posting top-line growth. It is still compounding earnings per share at a very high rate, which is critical for supporting the lofty valuation.

Guidance Strong, China Not Needed

Nvidia has issued strong guidance for Q1 FY27, with revenue expected to reach US$78b, GAAP gross margin of 74%, and operating expenses of around US$7.7b. To me, that guidance makes it clear that demand is still holding up at a very strong level.

What also stood out was management’s comment that this outlook does not assume Data Center revenue from China. That is important, because it suggests the guidance is being supported by strength elsewhere in the business, rather than relying on any contribution from a market that remains uncertain.

Blackwell Today, Rubin Tomorrow

AWS, Google Cloud, Microsoft Azure, and Oracle Cloud are all expected to deploy Vera Rubin-based instances. That makes a lot of sense, because these companies are constantly looking for ways to lower operating costs for AI inference, and Nvidia’s new chips appear to offer a meaningful step forward on efficiency.

Beyond the major cloud players, Nvidia is also strengthening its position across the wider AI ecosystem. Anthropic stands out through both investment ties and a deep technology partnership, with Claude continuing to scale on Azure using Nvidia systems.

Groq has entered a non-exclusive licensing agreement with Nvidia to help accelerate AI inference globally, while providers such as Baseten, DeepInfra, Fireworks AI, and Together AI are using Blackwell to reduce AI costs. These are important signals because they show Nvidia is not just winning at the hyperscaler level, but also across the next layer of AI infrastructure players.

Then there is CoreWeave, where the collaboration is aimed at supporting more than 5 gigawatts of AI factories by 2030. That gives you a sense of the sheer scale of the buildout that is still underway.

The Quarter Was Huge, The Next Question Is Duration

The broader takeaway, in our view, is that demand is clearly still surging. Nvidia’s new chip iterations are not just incremental upgrades. They are delivering real value to customers by lowering the cost of training and running AI workloads.

Nvidia valuation is not cheap by any meand and investors are paying a premium for growth it will be interesting was fy27 brings for the company.