AI is making Nvidia a fortune, and this is clearly just the beginning.

While some investors feared a slowdown in spending on AI infrastructure, Nvidia's latest results have shaken up this scenario.

The GPU specialist, which in just a few years has become the cornerstone of next-generation data centers, is posting performance that, once again, exceeds market expectations…

$120 billion in profits in one year

In the space of three years, Nvidia has changed scale. As reported by Reuters, the California-based group generated $120 billion in net profit over the past twelve months, compared to just $4.4 billion three years earlier. This represents a nearly 30-fold increase, extremely rare even among tech giants. In the last quarter, which ended in January, the momentum remained just as spectacular, with revenue up 73% year-over-year to reach $68.1 billion, exceeding analysts' forecasts. Quarterly net profit approached $43 billion, a 94% increase year-over-year. At this level, the company is occasionally surpassing the recent profits of players like Apple, Microsoft, or Alphabet. This surge is primarily based on data center chip sales, which jumped 71% to $61.7 billion in the quarter. Nvidia now reportedly captures nearly 90% of the market for GPUs dedicated to artificial intelligence projects, a near-monopoly in the race for computing power… A demand driven by cloud giants. Behind these results lies a structural phenomenon: the massive investments of hyperscalers. Indeed, Google, Amazon, Microsoft, and Meta collectively plan to invest over $500 billion in AI infrastructure this year. For the current quarter, Nvidia anticipates $78 billion in revenue, representing an expected increase of 77%. Its CEO, Jensen Huang, speaks of an “exponential” growth in demand for computing power, driven in particular by the emergence of AI agents capable of performing tasks autonomously.

The group also seeks to reassure about its production capacity, where despite tensions at some subcontractors like TSMC, Nvidia affirms it has sufficient stock and capacity to meet demand in the medium term.

It has also obtained authorization from US authorities to deliver small quantities of H200 chips to China, opening a further window into a strategic market.

Competition is organizing

This favorable picture does not, however, mean the absence of challenges, with AMD having partnered with Microsoft, or Google developing and marketing its own chips to players like Anthropic. The dependence of cloud giants on Nvidia could thus gradually decrease. For now, financial markets seem to consider that a large part of this performance was already priced in. The stock reacted little after the announcement, proof that Nvidia is now being judged against ever-increasing expectations.