Nvidia makes 43 times more annual profit than AMD
Nvidia is wallowing in money. However, not everything went smoothly recently: GeForce sales are falling because there were simply hardly any GPUs to buy.
Nvidia's boss Jensen Huang should be delighted with the latest figures.
(Image: Nvidia)
Another quarter, another record: at the end of its fiscal year 2025, Nvidia is scratching the sales mark of 40 billion US dollars within a single quarter. In the entire annual period from February 2024 to the end of January 2025, the company generated revenue of 130.5 billion dollars. This leaves 81.5 billion dollars in operating profit and 72.9 billion dollars in net profit. These values increase by 114 to 147 percent year-on-year.
To put that into perspective: Nvidia makes 43 times more annual net profit than AMD. Intel, with its minus, can only dream of such figures. Nvidia's annual operating cash flow increased by 44 percent to 16.6 billion dollars.
AI accelerators grow, GeForce shrinks
Nvidia's AI accelerators are once again by far the biggest sales driver. CEO Jensen Huang reveals that the latest Blackwell generation, based around the B100 and B200 GPUs, is now also generating billions in sales.
At first glance, Nvidia is growing less strongly in the last quarter than before: quarterly sales are “only” up by twelve percent – in the previous three quarters it was 15 to 18 percent. However, a look at the business figures shows that AI accelerators in particular are continuing to sell magnificently: Their turnover jumps by 18 percent to 32.6 billion dollars within three months. Network products related to the acquired specialist Mellanox are down slightly to three billion dollars (-3 percent).
(Image:Â Nvidia)
Nvidia recorded the biggest setback with its GeForce graphics cards, whose turnover fell by 22 percent to 2.5 billion dollars. CFO Colette Kress admits to a “limited supply of Blackwell and Ada GPUs”: The upper-class graphics cards in the GeForce RTX 4000 series have completely disappeared from the market after months of sales, and the new RTX 5000 are virtually unobtainable.
The two other divisions, professional virtualization and automotive, are growing, but at less than 600 million dollars each, their turnover is hardly worth mentioning.
More money for research
Nvidia is investing more and more money in research and development. The company allocated 3.7 billion dollars for this in the fourth quarter and 12.9 billion dollars for the year as a whole. This corresponds to additional expenditure of around 50 percent in each case.
Meanwhile, the enormously high net margin has taken a slight hit. It fell from 74.6% to 73% within three months. In the current first fiscal quarter, it is expected to fall to below 71 percent. Nvidia justifies this with higher production costs for current server products. At the same time, Nvidia is spending billions on share buybacks.
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Growth will continue in the new year
Sales are expected to rise to 43 billion dollars (+/- 2 percent) in the current quarter, which would correspond to growth of a good nine percent compared to the last quarter. Comparisons with the previous year's quarters are hardly relevant, as the only thing that matters is how many AI accelerators Nvidia can produce and sell.
The stock market is satisfied with the figures, but not surprised: the share price fluctuates between one and three percent in after-hours trading.
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