Nvidia’s Data Center Revenue Surges Amid AI Demand
Hyperscalers, including Amazon, Microsoft, and Google’s Alphabet, are significantly boosting their investment in data centers, spending an estimated $305 billion in 2025, with expectations for further increases in 2026. This demand is driven by artificial intelligence (AI) applications, and Nvidia is poised to benefit substantially, with its data center revenue growing 66% year-over-year to reach $51 billion in its fiscal third quarter, constituting 89% of the company’s total business.
Nvidia’s CEO Jensen Huang noted the emergence of a “virtuous cycle of AI,” wherein increased demand for AI models leads to heightened needs for Nvidia’s GPUs. The company is preparing for large-scale deployments through deals with firms like OpenAI, supporting their extensive AI operations. Analysts project a 67% increase in Nvidia’s total revenue in the upcoming fiscal fourth quarter, further solidifying its position in the competitive AI chip market, where it has garnered a 53% profit margin on $99 billion in earnings over the last four quarters.
