Firing on all cylinders

Life is good at Nvidia, which capped off a record year with $1.40 million in revenue for its fiscal fourth quarter ended January 31, 2016. That's a jump of 12 percent from $1.25 billion a year earlier, and a 7 percent spike from $1.30 billion in the previous quarter.

The strong finish pushed Nvidia's full-year revenue to $5.01 billion, up 7 percent from $4.68 billion the year before. After paying the bills, Nvidia was left with a profit of $929 million for the year (non-GAAP)—not too shabby.

"We had another record quarter, capping a record year," said Jen-Hsun Huang, co-founder and chief executive officer, Nvidia. "Our strategy is to create specialized accelerated computing platforms for large growth markets that demand the 10x boost in performance we offer. Each platform leverages our focused investment in building the world's most advanced GPU technology."

PC gamers are buying a lot of Nvidia hardware these days. All tallied, PC graphics card revenue rose a staggering 25.4 percent year-over-year to $810 million in the fourth quarter.

The future bodes well for Nvidia, which is in position to benefit from the virtual reality push that's about to take place. Both Oculus and HTC are close to shipping their respective VR headsets, which require a certain level of graphics performance. It's a sector Nvidia is very much plugged into with its GameWorks VR and GeForce GTX VR Ready program.

Investors reacted positively to Nvidia's earnings report—the company's shot up more than 12 percent earlier and is now up around 9 percent from the opening bell.

Follow Paul on Google+, Twitter, and Facebook