Remember Mayhem Monday in January 2025, when the biggest AI success story $595 billion vanished from Nvidia’s market value wealth in just minutes. The almost $600 billion wipeout in Nvidia’s wealth happened on the day frenzy over DeepSeek sent shockwaves in US and European stock markets. Other than Nvidia, other technology stocks including Google, Apple and Microsoft too lost billions. The launch and popularity of low-cost AI models from China’s DeepSeek rattled the technology industry. However, no company was as badly hit as Nvidia.
Now it seems that the Nvidia CEO Jensen Huang correctly said that the market hugely over reacted. For, Nvidia has reported a record-breaking fourth quarter for fiscal year 2025, with revenue reaching $39.3 billion, a 78% increase from the same period last year, and net income rising 80% to $22.1 billion. The company’s data center revenue nearly doubled, contributing significantly to these results.
At the earnings call, CEO Jensen Huang highlighted the “extraordinary” demand for Nvidia’s latest Blackwell AI chips, which generated $11 billion in revenue this quarter. Despite concerns last month over Chinese AI startup DeepSeek’s advancements, Huang emphasized that reasoning models like DeepSeek’s R1 require substantially more computing power, potentially up to 100 times more, underscoring the continued demand for Nvidia’s high-performance chips.
Looking ahead, Nvidia projects first-quarter revenue of approximately $43 billion, indicating sustained growth in the AI chip market. “We will grow strongly in 2025,” CEO Huang asserted at the earnings call.
Nvidia’s meteoric rise
Over the last two years, Nvidia, the poster child of the AI boom, has grown into the second-largest company on Wall Street. While Magnificent Seven stocks added roughly $11 trillion in market capitalization between the debut of ChatGPT in November 2022 and their combined peak in mid-December 2024, with Nvidia adding $2.7 trillion in market value, making it the world’s second-most valuable company at $3.2 trillion. Nvidia’s stock has surged around 1,800% in the last five years. Magnificent Seven stocks on average more than tripled in that time, while the benchmark S&P 500 has gained about 65%.