Nvidia (NVDA) Earnings Deep Dive

Nvidia released solid earnings this quarter. And (unsurprisingly to us), the company didn’t crumble.

NVDA reported:

• Q4 revenue of $39.3 billion, a 78% year-over-year increase, exceeding analyst expectations.

• Data center revenue surged 93% to $35.6 billion, driven by AI demand.

• Management guided for Q1 revenue of $43 billion, well above forecasts.

• Strong early demand for next-generation Blackwell GPUs: $11 billion in sales for Q4 and expected to ramp in Q1.

Despite beating expectations and strong guidance, the stock sold off after tariff news broke. The U.S. announced new tariffs on China, Mexico, and Canada, set to take effect in early March. These tariffs raise concerns about increased import costs, potential price hikes, and weakened consumer demand.

Nvidia’s Q4 report also included caution for slimmer margins as the company builds out Blackwell chip manufacturing. However, Nvidia expects the lower margins to improve later in the year.

Earlier this year we covered NVDA in the wake of DeepSeek panic — when the stock sank on fears of “cheap” AI models.

The chip-maker’s stock is trading about 5% higher than it was a month ago, even considering today’s pullback.

Long-term: Nvidia’s data center growth remains explosive, and AI infrastructure investment shows no signs of slowing.

The company holds a dominant position in high-performance computing, and with Big Tech AI focus still strong, demand for Nvidia’s chips should continue rising.

Many of these Big Tech companies increasing AI expenditures include some of Nvidia’s top customers like Microsoft, Meta, Amazon, and Google, who have all recently announced plans to raise their AI spending.

Nvidia CEO Jensen Huang remains entirely optimistic that AI momentum will continue, citing the shift towards reasoning and inference models which require “100 times more compute,” as well as a continued demand for AI infrastructure.

While short-term volatility is inevitable, the long-term AI-driven growth story remains firmly intact.

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