Nvidia announced a record revenue of $39.3 billion for the fourth quarter, marking a 78% increase from the previous year, as stated in the company's earnings report. Surpassing Wall Street expectations, Nvidia's earnings exceeded the estimated revenue of $38.1 billion, according to FactSet.
Despite the strong performance, Nvidia faced a decrease in gross margin to 73.5% due to escalating costs, causing apprehension among investors. Moving forward, Nvidia foresees a first-quarter revenue of $43 billion, indicating roughly a 65% growth from the previous year, driven by the demand for AI chips.