Nvidia's $120 Billion Year — And Why the Stock Dropped
Record earnings. Flat stock. What the market is really telling us about AI's $650 billion bet.
Three years ago, Nvidia posted $4.4 billion in annual profit. Last week, the company reported $120 billion. The stock dropped. When perfection can’t move the needle, it’s time to pay attention.
Let that number breathe for a moment.
Nvidia delivered fourth-quarter revenue of $68.1 billion, crushing Wall Street’s $66.2 billion estimate. Net income hit $43 billion in a single quarter — more than Cisco Systems generated in annual revenue at the height of the dot-com bubble.
The company guided for $78 billion next quarter, blowing past the $72.8 billion consensus by a margin that would qualify as a rounding error at most companies.
Jensen Huang told analysts that “the agentic AI inflection point has arrived” and that customers are “racing to invest in AI compute.”
Every metric in the report screamed dominance: data center revenue surged 75% year-over-year to $62.3 billion — …