Nvidia’s data center revenue skyrocketed during its fiscal first quarter 2025 as companies look to the chip-making giant for AI infrastructure. 

Data center revenue reached $22.6 billion, up 427% year over year, according to the company’s earnings report for the quarter ended April 28. Nvidia’s fiscal Q4 2024 data center revenue jumped 409% YoY to $18.4 billion.  

“Strong sequential data center growth was driven by all customer types, led by enterprise and consumer internet companies,” Executive Vice President and Chief Financial Officer Colette Kress said during Nvidia’s earnings call May 22. 

According to founder and Chief Executive Jensen Huang, data center revenue was boosted by demand for generative AI training and analysis from: 

• Cloud service providers; 
• Consumer internet companies; 
• Business enterprises; 
• National governments;  
• Automotive companies; and 
• Health care companies. 

BIGGER PICTURE: As demand for AI and gen AI increases in all sectors of the economy, the company continues to build “AI factories” or data centers tailored for AI solutions, Kress said during the call.  

“These next-generation data centers host advanced full-stack accelerated computing platforms where the data comes in and intelligence comes out,” she said.  

Nvidia worked with more than 100 customers building AI factories during the quarter, she said. 

BY THE NUMBERS: In Q1, Nvidia also reported: 

• Revenue of $26 billion, up 262% YoY; 
• Non-GAAP operating income of $18 billion, up 492% YoY; and 
• Non-GAAP operating expenses of $2.5 billion, up 43% YoY. 

NOTEWORTHY: American Express, PayPal and Canadian investment management service provider Wealthsimple use Nvidia’s solutions to fight fraud, enhance operations and manage portfolios, according to Nvidia’s website. 

SNOWFLAKE RESULTS: Cloud service provider Snowflake also reported earnings on May 22, posting revenue of $828 million, up 33% YoY. 

The company also announced plans to acquire technology assets and hire employees from AI company TruEra. 

“TruEra is an AI observability platform that provides capabilities to evaluate and monitor large language model apps and machine learning models and production,” which can add product offerings to Snowflake, CFO Mike Scarpelli said during Snowflake’s earnings call. 

Financial institutions including Citi, Fiserv and FIS are some of Snowflake’s clients, according to the company’s website. 

[stock_market_widget type=”inline” template=”generic” assets=”NVDA” markup=”{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}” realtime=”true” api=”yahoo-finance”].