Nvidia Just Reported $68 Billion in Revenue. Here's Why It Matters.

The market let out a collective sigh of relief when Nvidia (NVDA 0.70%) announced earnings late last month. Concerns about spending cuts on artificial intelligence (AI) products were dispelled when the company reported that revenue grew 73% year over year to $68 billion in fiscal Q4. Evidence has continued to indicate that the AI infrastructure spending fueling that revenue growth will continue.

Database software technology company Oracle has become the face of concern surrounding overspending and a potential bursting of the spending bubble. Its latest update signals that Nvidia’s revenue growth prospects remain solid.

Image source: The Motley Fool.

When $4.5 trillion is cheap

Nvidia’s market cap first crossed the $1 trillion mark less than three years ago. The stock has more than quadrupled since then, bringing it to its recent $4.5 trillion valuation. For some investors, that might have just seemed to be too high, too fast. But that’s exactly why Nvidia’s $68 billion in Q4 revenue matters.

That 73% year-over-year revenue growth wasn’t a fluke. In fact, Nvidia’s quarterly revenue growth has actually outpaced its stock price rise over the last three years.

NVDA data by YCharts

Investors should expect that growth to continue. Oracle’s recent strong guidance for sales and capital investment growth is one signal. Nvidia anticipates quarterly sales will rise to $78 billion in the current quarter. That would represent 77% year-over-year growth. Accelerating sales can continue, too, if the AI spending announced by large tech companies materializes. That makes Nvidia stock still look inexpensive.

Continuous improvements

Nvidia isn’t just relying on selling its existing hardware and software. The company continues to innovate. As recently as this week, it unveiled a new open-weight model “designed to run complex agentic AI systems at scale.” By releasing the trained parameters (weights) of an AI model publicly, Nvidia is working to grow its AI ecosystem, uphold its leadership in GPU hardware, and transition from being a component supplier to becoming a comprehensive AI platform.

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NASDAQ: NVDA

Nvidia

Today’s Change

(-0.70%) $-1.29

Current Price

$181.93

Key Data Points

Market Cap

$4.5T

Day’s Range

$181.68 - $185.40

52wk Range

$86.62 - $212.19

Volume

182M

Avg Vol

177M

Gross Margin

71.07%

Dividend Yield

0.02%

Investors are still excited about AI’s potential, too. That optimism has a majority of retail investors planning to continue investing in stocks, according to recent research from The Motley Fool. It stands to reason that Nvidia stock will be a focus as it becomes the leader in more than just hardware.

An entire AI platform is what CEO Jensen Huang envisions for his company. He recently described it as a “five-layer stack” of energy, chips, infrastructure, models, and applications. Nvidia is innovating throughout that stack. Investors should expect more new products to come, making Nvidia still a great stock to buy now.