Nvidia Executives Interpret Q4 Financial Report: The Inflection Point of Agentic AI Has Already Been Seen

　　Nvidia’s total revenue for the quarter increased by 73% year-over-year, rising from $39.3 billion in the same period last year to $68.13 billion. Currently, more than 91% of the company’s revenue comes from its data center division, which primarily focuses on market-leading AI chips.

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　　After the earnings release, Nvidia President and CEO Jensen Huang and Executive Vice President and CFO Colette Kress, along with other senior executives, participated in the subsequent earnings call to interpret the key points of the financial report and answer analysts’ questions.

　　Below are the main highlights of the analyst Q&A session:

　　BofA Securities analyst Vivek Arya: Management mentioned earlier in the briefing that there are certain expectations for the company’s business in fiscal year 2027, and the company’s purchasing intentions to some extent reflect management’s confidence in the future. However, I’d like to follow up, Mr. Huang—at present, the company has several very important cloud computing customers, and these major clients’ capital expenditures have already approached $700 billion this year. Many investors are concerned that it will not be easy for capital expenditures at this scale to continue growing next year. At the same time, to our knowledge, some of these companies are also under some cash flow pressure.

　　From this perspective, although you are very confident in the company’s product roadmap and procurement capabilities, my question is: how confident are you that your customers will continue to expand their capital expenditures? In other words, in the current environment, do you expect customers to further increase their capital expenditures in the next fiscal year? If customers’ capital expenditures cannot achieve sustained growth, how does Nvidia plan to achieve its own growth under these circumstances?

　　Jensen Huang: I remain confident in the continued growth of our customers’ cash flows.

　　The reason is actually quite simple. We have already seen the inflection point of Agentic AI, and everyone now recognizes the practical value of AI agents across the globe and in various enterprises.

　　Because of this, you are seeing extremely strong demand for computing power in the industry. In this new era of AI, a company’s compute capacity is equivalent to its revenue. Without compute, you cannot generate tokens; without tokens, it is impossible to achieve revenue growth. So, in this AI era, compute capacity equals revenue for a company.

　　I am very certain that, at this stage, with the efficient use of AI tools like Codex and Claude Code, users’ enthusiasm for AI-assisted work, and their focus on enterprise-level open cloud platforms, all enterprise-level ISVs (Independent Software Vendors) are currently trying to build AI agent systems into their tools and platforms. Therefore, I am convinced the industry is already at a clear inflection point: at this point, we need to generate productive tokens for users that are also profitable for cloud service providers.

　　So, from the simplest logic, you can understand it directly: the essence of computing has changed. In the past, software ran on computers and required relatively limited compute resources, with annual capital expenditures of about $300 billion to $400 billion; now, those investments have shifted to AI technology development. To generate enough tokens with AI, users must have sufficient compute capacity, and that compute directly translates to growth, which ultimately converts into revenue.

　　Morgan Stanley analyst Joe Moore: Management previously mentioned the company’s investment in Anthropic, possibly including strategic investments in companies such as OpenAI; at the same time, management also mentioned some of Nvidia’s partners, such as Intel, Nokia, and Synopsys among others.

　　Obviously, Nvidia is now at the core of the entire ecosystem. Could management talk to us about what these investments mean in the overall strategy? What role do these investments play? Does management see the balance sheet as a tool to further consolidate Nvidia’s position in the entire ecosystem and drive continued growth?

　　Jensen Huang: As you’ve seen, fundamentally, all of Nvidia’s work and investments are centered around our ecosystem. That’s exactly why users are so optimistic about our business.

　　Nvidia’s ecosystem is extremely rich, with almost every startup worldwide working on Nvidia’s platform and within Nvidia’s ecosystem. We cooperate with every cloud service provider, are integrated into various local data centers, and are involved in edge computing scenarios and robotic systems all over the world. You could say that thousands of AI-native companies are built on Nvidia’s platform.

　　Therefore, we want to grasp this tremendous opportunity. Currently, we are at the beginning of a new era in computing, and the computing platform is transforming. We hope to bring all users onto Nvidia’s platform. In fact, everything we do is built on CUDA (NVIDIA’s general-purpose parallel computing platform and programming model). You could say our starting point is very strong.

　　As we continue to build out the complete Nvidia AI ecosystem in the future—whether it’s AI, physical AI, AI physics, life sciences, biology, robotics, or manufacturing—we hope these ecosystems can be built on Nvidia’s platform. This provides us with an extremely valuable opportunity to invest in the ecosystem across all layers of the technology stack.

　　Moreover, compared to the past, Nvidia’s ecosystem is now much richer. In the past, to a large extent, we were just a computing platform company centered on GPUs; now, we have become an AI computing infrastructure company. In every aspect of computing infrastructure, we have our own platform. From computing itself to AI models, to networking, to DPU, we possess a complete computing technology stack.

　　As I mentioned earlier, whether it’s in enterprise applications, manufacturing, industry, scientific research, or robotics, we have different technology stacks in each ecosystem. We will also ensure ongoing investment in these ecosystems.

　　Therefore, our future investment focus is very clear and highly strategic: to continuously expand and deepen Nvidia’s ecosystem coverage and influence in the industry.

　　(Continuing to update...)

Editor: Liu Mingliang