Nvidia (NVDA) reported fiscal fourth-quarter earnings that exceeded analysts' expectations, as demand for artificial intelligence powered sales to a fresh high. The chipmaker posted record quarterly revenue of $39.

Long a Wall Street favorite, Nvidia stock has struggled recently, falling 3% over the last six months, worse than the S&P 500’s 7% return.

Nvidia stock rose more than 4% early Wednesday ahead of the company’s fourth quarter earnings report after the bell.

Nvidia on Wednesday reported a surge in fourth-quarter profit and sales as demand for its specialized Blackwell chips which power artificial intelligence systems continued to grow. For the three months that ended Jan.

Sales of the firm's chips hit more than $39bn (£30.7bn) over the three months ended 27 January, up 74% year-on-year. Nvidia has seen a surge of demand, as big tech companies turn to the firm for chips that can handle the large amounts of data used to train AI models.

Nvidia’s H20 chips are in high demand in China—indicating that DeepSeek's more efficient AI doesn’t mean lower chip demand.