TLDRNvidia reported record Q4 revenue of $39.3 billion, up 78% year-over-year, with earnings per share of $0.89 beating analyst estimatesData center revenue reached $35.6 billion, nearly doubling from previous year, driven by strong demand for Blackwell AI chipsDespite DeepSeek’s emergence causing a $600 billion market cap loss in January, CEO Jensen Huang stated “demand for Blackwell is extraordinary”Nvidia expects Q1 FY2026 revenue of $43 billion with gross margins around 71%The company maintains over 90% market share in GPUs despite growing competition and potential challenges from developments like DeepSeek’s technologyNvidia reported record fourth-quarter revenue of $39.3 billion, up 78% from a year ago. The chipmaker’s earnings beat Wall Street expectations with diluted earnings per share of $0.89, higher than analyst estimates of $0.84.This marks Nvidia’s fourth consecutive quarter of beating earnings forecasts. The company has maintained its dominant position in the AI hardware market despite recent challenges from competitors.Shares of the company closed up 3.67% at $131.28 on the day of the announcement. The stock rose another 2.32% in after-hours trading, reaching $134.33 as investors reacted to the results.vThe data center unit, Nvidia’s largest business segment, was the main driver of growth. Revenue from this division reached $35.6 billion, climbing 16% from the previous quarter and nearly doubling year-over-year.CEO Jensen Huang highlighted the strong demand for the company’s Blackwell AI chips. “Nvidia is scaling AI computing at an unprecedented pace,” Huang said in a statement accompanying the results.Huang added that “demand for Blackwell is extraordinary as businesses seek greater AI reasoning and processing capabilities.” The statement comes at a time when some market watchers have expressed concerns about Nvidia’s growth sustainability.For the full fiscal year, Nvidia’s revenue more than doubled to $130.5 billion. Net income surged 145% to $72.9 billion, showing the company’s strong position in the AI market.Looking ahead, Nvidia expects revenue of $43 billion in the first quarter of fiscal 2026. This forecast is in line with Wall Street expectations but lower than some of the more optimistic projections.The company’s gross margin is projected at 70.6% on a GAAP basis and 71.0% on a non-GAAP basis. This means Nvidia expects to keep about 71 cents in profit from every dollar of sales after covering basic production costs.China’s DeepSeek ModelThis earnings report was closely watched because it was the first since China’s DeepSeek AI made headlines in January. DeepSeek introduced an AI model that matched or exceeded many U.S.-made models while requiring less computing power.That news had initially caused Nvidia’s stock to plunge, losing $600 billion in market value in a single day. The tech sector as a whole shed an estimated $1 trillion in market capitalization at that time.However, Huang addressed these concerns during the earnings call. He stated that DeepSeek has actually increased enthusiasm for Blackwell because reasoning models require 100 times more computing power.“We designed Blackwell for this moment,” Huang said during the call. He emphasized that all signs point to increased demand for AI infrastructure in the “near-term, midterm and longterm.”Analysts have noted that while competitors are making progress, the most advanced AI models still require the kind of computing resources that Nvidia provides. “Blackwell generating ‘billions in sales’ validates Nvidia’s top position,” said Jacob Bourne, a technology analyst at eMarketer.Some analysts have pointed out that market reactions have been somewhat muted. This is because the company is now expected to exceed Wall Street projections by wide margins.“Nvidia’s latest quarterly sales are bigger than its entire annual revenue from just two years ago,” noted Jacob Falkencrone of Saxo Markets. But with high growth expectations already factored into the stock price, “it wasn’t the ‘blowout’ some were hoping for.”Nvidia controls more than 90% of the market for graphics processing units (GPUs). This dominant position has helped the company reach a valuation of $3.1 trillion, making it one of the world’s most valuable companies.The earnings report comes as the broader stock market showed mixed results. The S&P 500 edged up slightly, breaking a four-day losing streak, while the Dow Jones Industrial Average fell by 0.4%.Meanwhile, the tech-heavy Nasdaq Composite gained 0.3%. In after-hours trading, futures for the S&P 500 and Nasdaq saw small increases while Dow Jones futures remained mostly unchanged.Huang also discussed the next wave of AI development on the horizon.“We’ve really only tapped consumer AI and search and some amount of consumer generative AI,” he said, adding that “the next wave is coming. Agentic AI for enterprise, physical AI for robotics and sovereign AI as different regions build out their AI.”Nvidia also noted that the impact of Donald Trump’s proposed tariffs on its business remains unclear. The company continues to monitor policy developments that could affect its global operations.The post Nvidia (NVDA) Delivers Record Q4 Results Despite Recent AI Market Turbulence appeared first on Blockonomi.