Chipmaker Nvidia flouts AI scepticism with record revenue
BBC World
February 25, 2026
AI-Generated Deep Dive Summary
Nvidia, a leading chipmaker, reported a 73% year-over-year increase in fourth-quarter revenue, reaching $68.1 billion—a record high. This impressive figure exceeded analyst expectations and comes amid growing investor skepticism about massive investments in artificial intelligence (AI) technology. Nvidia's CEO, Jensen Huang, highlighted the exponential growth in computing demand, driven by a race to invest in AI compute infrastructure, which he referred to as the "AI industrial revolution."
The company has positioned itself as a key player in the AI ecosystem, supplying advanced chips to major players like OpenAI and Meta for training and deploying AI models. Nvidia's recent initiatives include introducing new technologies to generate its own demand, such as an open-source AI model called "Alpamayo," designed for autonomous vehicles, and plans to launch a robotaxi service by next year. Despite competition in the inference market—the process of applying trained AI models to real-world data—Nvidia has expanded its expertise through acquisitions, including a $20 billion deal to acquire rival Groq.
However, Nvidia's success is not without challenges. The company is navigating geopolitical tensions between the U.S. and China, with restrictions on chip sales to Chinese customers creating uncertainty in their business strategy. Despite these hurdles, Nvidia remains optimistic about its future growth, driven by its role in building AI infrastructure and its expanding product line for embedding AI into physical products.
This surge in revenue underscores the sustained demand for AI chips and highlights Nvidia's central role in shaping the future of AI technology. The company's ability to adapt and innovate, despite broader concerns about over-investment in AI, signals a continued boom in the sector. For readers interested in global tech trends, this story illustrates the accelerating pace of AI development and its far-reaching implications for industries worldwide.
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Originally published on BBC World on 2/25/2026