NVIDIA (NVDA) reported yet another record-breaking quarter, driven by increased demand for artificial intelligence (AI) and data centre solutions. The company posted $39.3 billion in revenue for Q4 2024, a 78% year-over-year (YoY) increase, highlighting a strong finish to the financial year. The expansion of NVIDIA’s Blackwell AI supercomputers and dominance in AI infrastructure, data centres, and cloud computing partnerships were key contributors to this performance. CEO Jensen Huang highlighted the rapid advancements in agentic and physical AI, positioning NVIDIA as a leader in the next phase of AI-driven industries.
● Revenue: $39.3 billion, up 78% YoY and 12% from Q3 2024.
● Gross Margin: 73.5%, slightly lower than 76.7% in Q4 2023, but reflective of significant investments in AI infrastructure.
● Operating Income: $25.5 billion, a 73% YoY increase, demonstrating strong profitability.
● Net Income: $22.1 billion, up 72% YoY, driven by growth in data centre revenue.
● Earnings Per Share (EPS): $0.89, up 71% YoY.
● Full-Year Revenue: $130.5 billion, over double the $60.9 billion from FY2024.
● Free Cash Flow: $60.7 billion, reinforcing NVIDIA’s strong cash generation capability.
Analysts remain bullish on NVIDIA, reaffirming its "Strong Buy" consensus, with a mean price target of $178.56, suggesting a potential 36% upside. Following NVIDIA’s strong Q4 earnings, analysts raised their price targets, including Bank of America ($200), Morgan Stanley ($162), and Bernstein ($185), citing AI dominance, data centre expansion, and strategic cloud partnerships. The company’s Blackwell AI architecture and aggressive product innovation continue to set it apart from competitors. Concerns over supply constraints and geopolitical risks, NVIDIA’s record-breaking revenue, strong free cash flow, and high demand for AI infrastructure position it as a top long-term investment in the AI revolution.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
