Nvidia's Strong Earnings Fail to Impress Investors, Raising Questions About AI Market Momentum

Nvidia's solid revenue forecast generates shrugs from investors, shares dip

(Reuters) - Nvidia's upbeat quarterly forecast signaled that the AI boom is not over, but it failed to bring buyers back into the "Magnificent Seven" stocks that have dipped in the last three months. The stock lost about 3% to $127.10 in choppy trading, and other members of the group such as Microsoft and were marginally lower. Nvidia is seen as a barometer of the AI market, with investors counting on it to fuel a sputtering rally following the "Magnificent Seven" stocks' tumultuous retreat from their late-2024 peaks. Chinese startup DeepSeek's low-cost AI model had also fanned investor skepticism over the billions of dollars earmarked by Big Tech for AI infrastructure, with many of the stocks still struggling to recoup the losses. Fears of a pullback in spending on Nvidia's priciest AI chips had evaporated more than half a trillion dollars of its stock market value in a single day last month, a record on Wall Street. And more recently, an analyst report that Microsoft had cut back on data-center leases reignited concerns over tech companies' spending. Nvidia's report was eyed as a bellwether for chip spending on generative AI - and it indicated demand remains strong, though its margin outlook ebbed from previous quarters. Nvidia's "datapoints are very positive for the wider AI ecosystem," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. CEO Jensen Huang on Wednesday said demand for its latest Blackwell chip was "amazing" and that it had already pulled in around $11 billion in revenue related to the processor in the fourth quarter. The world's second-most valuable company has been the top beneficiary of an AI-driven spending spree over the past two years, with its shares gaining more than 400% in that period. Nvidia expects total revenue of $43 billion, plus or minus 2% for the first quarter, compared with analysts' average estimate of $41.78 billion, according to LSEG. The massive revenue surges and beats that had become synonymous with Nvidia, however, are becoming a thing of the past. The company's January-quarter revenue of $39.33 billion beat estimates by a margin of 3.4%, compared with a beat of more than 7% in the year-ago period. Nvidia also expects its margin to dip in the current quarter to 71% from 73.5% as it ramps up Blackwell production, though finance chief Colette Kress said the company would return to the mid-70% gross margin range later in the fiscal year. Of the 63 analysts covering the stock, 33 have a "strong buy" rating, as per LSEG data. The median price target stood at $175, implying that analysts expect a 33% increase from the stock's Wednesday close. Nvidia shares recently traded at about 29 times their forward earnings, down from more than 80 two years ago, as rising earnings pull down the premium at which the stock trades. Rival Advanced Micro Devices trades at about 22 times its forward earnings. "At around 30x forward earnings the valuation still doesn't look overcooked," said Derren Nathan, head of equity research at Hargreaves Lansdown. (Reporting by Alun John in London, Joel Jose, Sruthi Shankar and Arsheeya Bajwa in Bengaluru; Editing by Amanda Cooper, Saumyadeb Chakrabarty and Sriraj Kalluvila)

Nvidia's optimistic forecast fails to convince Wall Street

Nvidia's first-quarter revenue forecast was better than market estimates, with CEO Jensen Huang also noting the company was seeing "amazing" demand for its new Blackwell chips. But growth is slowing. Nvidia's projected revenue increase of about 65% is far from the triple-digit growth that investors have been accustomed to in the past year, while the company also expects gross margin to dip to 71%, the lowest level in at least a year.Wall Street took a dim view of Nvidia's quarterly forecast on Thursday with investors pushing the stock down more than 8%, piling pressure on the "Magnificent Seven" stocks that have garnered market skepticism in the last three months. The stock closed lower at $120.15, while other members of the group such as Microsoft and Amazon also ended the session weaker, after Nvidia's earnings failed to inspire the kind of gains that became a hallmark of the AI rally through 2023 and 2024. To be sure, Nvidia's first-quarter revenue forecast was better than market estimates, with CEO Jensen Huang also noting the company was seeing "amazing" demand for its new Blackwell chips. But growth is slowing. Nvidia's projected revenue increase of about 65% is far from the triple-digit growth that investors have been accustomed to in the past year, while the company also expects gross margin to dip to 71%, the lowest level in at least a year. Nvidia is viewed as a barometer of the health of AI spending and the two-year boom propelled its valuation to more than $3 trillion. Investors were hoping its results would restart a rally that has sputtered following the "Magnificent Seven" stocks' peaks in late 2024. In recent weeks, Chinese startup DeepSeek's low-cost AI model had fanned investor skepticism over the billions of dollars earmarked by Big Tech for AI infrastructure, with many of the stocks still struggling to recoup the losses. Fears of a pullback in spending on Nvidia's priciest AI chips vaporized more than half a trillion dollars of its stock-market value in a single day last month, a record on Wall Street. And more recently, an analyst report that Microsoft had cut back on data-center leases reignited concerns over tech companies' spending. Nvidia's report was eyed as a bellwether for chip spending on generative AI - and while it indicated demand remains strong, it did not quell concerns among investors who were hoping for more. "(The) results and guidance were relatively in line with market expectations - not bullish enough to see another beat and raise," said HSBC Global Research analyst Frank Lee. Nvidia expects total revenue of $43 billion, plus or minus 2% for the first quarter, compared with analysts' average estimate of $41.78 billion, according to LSEG. The massive revenue surges and beats that had become synonymous with Nvidia, however, are becoming a thing of the past. The company's January-quarter revenue of $39.33 billion beat estimates by a margin of 3.4%, compared with a beat of more than 7% in the year-ago period. Nvidia's Huang on Wednesday said the company had already pulled in around $11 billion in revenue related to its Blackwell processor in the fourth quarter. The world's second-most valuable company has been the top beneficiary of an AI-driven spending spree over the past two years, with its shares gaining more than 400% in that period. Of the 63 analysts covering the stock, 33 have a "strong buy" rating, as per LSEG data. The median price target stood at $175, implying that analysts expect a 33% increase from the stock's Wednesday close. Nvidia shares recently traded at about 29 times their forward earnings, down from more than 80 two years ago, as rising earnings pull down the premium at which the stock trades. Rival Advanced Micro Devices trades at about 22 times its forward earnings. "At around 30x forward earnings the valuation still doesn't look overcooked," said Derren Nathan, head of equity research at Hargreaves Lansdown.

Nvidia Stock Is Falling. Analysts Are Still Bullish on Its AI-Driven Growth.

Bank of America called Nvidia a "top pick" on its AI dominance and raised its price target for the stock. Nvidia (NVDA) shares gave up early gains Thursday after the chipmaker reported fourth-quarter earnings that topped Street estimates. Investors may have expected more from the AI darling. Shares were down about 3% at $127 in intraday trading. The stock has had a tough start to 2025, with shares down about 5% for the year so far, after nearly tripling in value in 2024. Better-than-expected results have become "routine" for Nvidia, Morgan Stanley analysts said, with expectations climbing ahead of the company's report. However, "everything improves from here," the analysts said, and raised their price target to $162 from $152, pointing to Nvidia's strong outlook and "language around 'amazing' levels of Blackwell demand." Bank of America analysts called the stock a "top pick on AI dominance" and raised their price target to $200 from $190. Nvidia's data center segment, which delivered record quarterly revenue, "potentially faces strong, long-term demand dynamics," the analysts added. Several of Nvidia's Big Tech buyers, including Microsoft (MSFT), Meta (META), Amazon (AMZN) and Google parent Alphabet (GOOGL), recently announced plans to raise their capital expenditures to fuel their AI ambitions. Wedbush analysis said the results showed "few (if any) blemishes" with "seemingly only good news ahead." Nvidia's annual GPU Technology Conference is in March, and CEO Jensen Huang told analysts on the company's earnings call to expect "exciting things to come" including what's next after its Blackwell line of chips. Wedbush maintained its price target of $175 and "outperform" rating. Nvidia reported $11 billion in quarterly revenue from Blackwell, which CFO Colette Kress said was the company's fastest-ever product ramp, according to an earnings call transcript provided by AlphaSense. Going forward, Jefferies analysts said "the supply chain should continue to improve, and we see no signs of demand issues." The analyst posted a price target of $185. Despite recent losses, Nvidia shares have added nearly two-third of their value over the past 12 months.

Nvidia Stock Climbs Ahead of Chipmaker's Highly Anticipated Earnings

As one of the most valuable companies in the world by market cap, swings in Nvidia's stock price in the wake of its results can have an outsized impact on the market. Nvidia (NVDA) shares climbed Wednesday amid rising expectations for the AI chipmaker's fourth-quarter results, due for release after the bell. Shares were up over 4% in recent trading, leading gains on the Dow Jones Industrial Average. Shares of other semiconductor firms like Broadcom (AVGO), Qualcomm (QCOM), and Advanced Micro Devices (AMD) also rose, as well as shares of Nvidia partners such as Micron Technology (MU) and TSMC (TSM). The PHLX Semiconductor Index (SOX) was up nearly 3%. With a market capitalization of $3.2 trillion, second only to Apple (AAPL), swings in Nvidia's stock price in the wake of its results could have an outsized impact on the market. Analysts are overwhelmingly bullish on Nvidia's results and stock, expecting record revenue, but the chipmaker could face an increasingly high bar to impress investors as several analysts lifted expectations ahead of the report. Jefferies analyst Blayne Curtis told clients Tuesday he expects "another beat and raise" as Nvidia's Blackwell line ramps. UBS recently doubled its estimate for Blackwell's contribution to fourth-quarter revenue, citing supply chain improvements. Bank of America analysts said Tuesday they expect Nvidia's sales could top Street estimates by $1 billion to $2 billion, with Wedbush anticipating a "$2 billion beat and $2 billion raise," adding that a majority of Nvidia customers they spoke with have boosted their budgets for AI spending. Nvidia's stock has had a tough start to the year, with shares about 2% lower for 2025 so far. Still, they've added about two-thirds of their value over the past 12 months.

Nvidia's strong earnings can't keep its stock from sliding -- along with other chipmakers

Nvidia (NVDA-2.87%) and other semiconductor stocks gave up premarket gains and fell in early Thursday Wall Street trading. While the AI chipmaker yesterday posted earnings that surpassed fourth-quarter estimates with robust guidance, they may have fallen short of the complete blowout that some investors had anticipated. Rival chipmakers Advanced Micro Devices (AMD-1.09%), Micron (MU-1.85%), Broadcom (AVGO-1.06%) and Intel (INTC+1.81%) also declined, shedding pre-opening gains. "This is telling you more about the state/sentiment of the market, and [its] volatile nature ... than it tells you about how Nvidia is doing in our eyes," Mahoney Asset Management CEO Ken Mahoney said before the open. "These results mean a lot for the stock market and the AI ecosystem." Nvidia's strong order book for its newest models is an indication that its customers are continuing to invest in artificial intelligence, and may lay to rest concerns that DeepSeek's recently unveiled, cheaper AI model has prompted companies to defer or reduce their spending plans. "CEO commentary suggests Blackwell demand is 'amazing,' supported by strong top-line results," Gabelli Funds' John Belton said. "It should be a positive read for AI demand and the investment cycle." Elsewhere, TSMC (TSM-3.40%) stock fell in Taipei on Thursday. Taiwan Economy Minister Kuo Jyh-huei said the chip foundry would need government permission for any overseas joint venture, but there are no restrictions on making the most-advanced chips overseas other than for China, Reuters reported. The Trump administration has pushed to have TSMC buy Intel's chipmaking operations or at least operate them as a joint venture. The Taiwanese firm isn't actually interested, and even the threat of tariffs probably won't be enough to force a deal. The nation continues to negotiate with the U.S. to seek the best conditions possible for Taiwanese companies under possible new American tariffs, Kuo told the news agency.

Wall Street asks if Nvidia gain will hold after smallest revenue beat in two years

The most anticipated earnings report of the season has finally arrived, but investors aren't tripping over themselves to buy the leading AI chip stock. Nvidia 's fiscal fourth quarter earnings and revenue beat analyst expectations . The company's top line soared by 78% year over year thanks to strong artificial intelligence demand. That said, the stock was only up about 1% premarket, thanks in part to lackluster quarterly profit margin guidance. On top of that, the latest report shows a worrying trend: The market's momentum leader could be slowing down. Deutsche Bank strategist Jim Reid highlighted that Nvidia's revenue beat was the smallest in two years. "That was underwhelming for investors used to much bigger upside surprises," Reid wrote to clients, adding that "a modest beat, and nothing spectacular in terms of guidance, meant the report failed to live up to the hype that has accompanied the chip giant's earnings over the past two years." This could be a problem for a market that's been struggling to find its footing. The S & P 500 barely snapped a four-day losing streak on Wednesday and is down more than 1% for the month. On top of that, options data suggested Nvidia could move the broader market more than usual. According to Goldman Sachs , the S & P 500 is poised to rise or fall 1.3% in the two days following Nvidia's release. That's more than the average 0.8% move seen after the company's previous eight reports. Bottom line: If Nvidia falters, the S & P 500 could add to its February woes. Elsewhere Thursday morning on Wall Street, KBW downgraded Goldman Sachs to market perform from outperform . The firm cited the bank's high valuation relative to history. "GS still has catalysts including a strong trading environment, improving [investment bank] backdrop, restructuring its consumer business and improving margins in Asset Management; however, GS is at peak valuation with potential headwinds against strong market expectations owing to market uncertainty surrounding tariffs, inflation, interest rates and government policies," analyst David Konrad wrote. "These uncertainties have led to a disappointing start of the year in investment banking, driving a recent rotation away from capital market stocks."

Nvidia's Q4 Revenue Surges Over 78%, Nearly 8x Higher Than 5 Years Ago: Analysts Debate Stock's Next Move As Jensen Huang Says Blackwell Production Has Been Ramped Up - NVIDIA (NASDAQ:NVDA)

NVIDIA Corp. NVDA reported fourth-quarter revenue of $39.3 billion, representing an extraordinary growth trajectory that has seen quarterly revenue multiply nearly eight times in just five years, according to data shared Wednesday by The Kobeissi Letter. What Happened: The chipmaker's daily revenue reached $427 million throughout the fourth quarter, with data center sales -- primarily from AI-focused GPUs -- surging 93% year-over-year to $35.6 billion, now accounting for over 90% of total revenue. Despite beating analyst expectations with earnings per share of $0.89 versus $0.84 expected and revenue exceeding forecasts by $1 billion, NVDA shares traded slightly lower after the announcement, continuing a pattern of muted post-earnings reactions. Analyst John Kicklighter noted that the stock exhibited "lots of volatility, but no clear direction," with a range of approximately 8% from the spot relative to Nvidia. RiskReversal Co-Founder Guy Adami expressed concern about potential margin deceleration, telling CNBC, "If margins start to decelerate, that's when these stories typically get long in the tooth." Why It Matters: CEO Jensen Huang highlighted increasing computational demands in AI, saying that next-generation models require "100 times more compute" than earlier versions. He specifically cited DeepSeek's R1, OpenAI's GPT-4, and xAI's Grok 3 as examples of models using intensive reasoning processes. "DeepSeek was fantastic," Huang said, praising its open-source reasoning model despite the company's stock dropping 17% in January over concerns that DeepSeek had found ways to achieve better AI performance with lower infrastructure costs. Nvidia forecasts first-quarter revenue of $43 billion, topping estimates of $41.75 billion. Huang says Blackwell AI supercomputers saw "billions in sales" in their first quarter as the company ramped up "massive-scale production." NVDA currently has a consensus price target of $172.28 based on 40 analysts, with recent targets from Rosenblatt, Morgan Stanley, and Tigress Financial implying a potential 52.59% upside. Read Next: Elon Musk's Influence Over The Government Set To Increase, Trump Orders All Federal Agencies To Appoint A DOGE Commissar Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$129.32-1.49%OverviewMarket News and Data brought to you by Benzinga APIs

Nvidia Growth Slows But Blackwell Demand Stays Strong

Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Spotify. Nvidia's (NVDA) most-awaited results finally arrived - but it wasn't the blowout report that investors had been hoping for (or have become accustomed to). The AI darling's stock seesawed since the results were issued, slipping 1.5% to $129.32/share after hours on Wednesday, and rising 1% before the bell today. Fine, not great: Nvidia's fourth-quarter results easily beat Wall Street estimates. However, the pace of its data center revenue growth - which accounts for most of its revenue - slowed considerably. Still, the company recorded $11B of Blackwell revenue in the reported quarter, exceeding its expectations and allaying investor fears of DeepSeek slowing demand. "We've successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter," CEO Jensen Huang noted. Looking ahead: Nvidia expects $43B revenue in the first quarter of FY2026, plus or minus 2%, compared to the consensus estimate of $42.3B. The Blackwell ramp-up has weighed on Nvidia's margins, with first-quarter adjusted gross margin forecast to be 71%. "When fully ramped, we have many opportunities to improve the cost, and gross margin will improve and return to the mid-70s, late this fiscal year," said CFO Colette Kress. As for the impact of potential tariffs, Kress said, "it's an unknown until we understand further what the U.S. government's plan is." SA analysts react: Investing Group Leader Jonathan Weber said Nvidia's fundamentals are still strong, and its market position is compelling. "But margin trends and the ongoing growth slowdown are not very encouraging, and NVDA remains rather pricey," he cautioned. SA analyst Hunter Wolf Research struck a more bullish tone, saying the key takeaway is robust Blackwell demand and its ramp-up "could continue to drive Nvidia's growth in the near future."

Nvidia Earnings Spark Chip, AI Stock Selloff

Nvidia shares finished Thursday off more than 8%, putting the stock down more than 10% this year. Fellow chipmakers Broadcom (AVGO) and Micron (MU) both fell more than 6%, while the PHLX Semiconductor Index (SOX) dropped 6% itsef. Nvidia's slump weighed on the major stock indexes broadly. The tech-heavy Nasdaq Composite ended down 2.8%, the S&P 500 was off 1.6%, with seven of its 11 sectors in the red. Nvidia surpassed Street expectations with its fourth-quarter earnings report on Wednesday evening. The company's data center revenue, a proxy for AI demand, nearly doubled from the same quarter last year. Yet the stock wavered, seesawing between gains and losses in extended trading last night and this morning. Market participants on Wednesday afternoon were prepared for a big post-earnings stock move, with options pricing predicting shares would rise or fall 8% by the end of this week. Thursday's selloff implied that Nvidia's results were not good enough for investors, as concerns about excessive AI spending and economic conditions have taken the wind out of the AI trade's sails in recent weeks. Investors have sold off richly-priced AI stocks in the last week, a trend that continued at a rapid clip during Thursday's selloff. Shares of Super Micro Computer (SMCI), which soared yesterday after the AI server maker narrowly met a deadline to avoid having its stock removed from the Nasdaq, fell 16%. Nuclear power provider Vistra (VST), which rose more than 200% last year, dropped 12% as the broader AI slump overshadowed its own better-than-expected earnings report. Palantir (PLTR), another of Wall Street's favorite AI plays, slid 5%.

Nvidia Shares Dip Despite Strong Q4 Earnings Beat, Record Revenue: What's Going On? - NVIDIA (NASDAQ:NVDA)

NVIDIA Corporation NVDA shares are moving lower Thursday. The stock is reversing amid a possible trader selloff after reporting fourth-quarter financial results. What To Know: Nvidia posted record revenue of $39.3 billion for the fourth quarter, surpassing the consensus estimate of $38.05 billion, according to Benzinga Pro. The company's top-line results were up 78% year-over-year and 12% sequentially. Earnings per share came in at 89 cents, versus analyst estimates of 84 cents per share. Nvidia reported 82% earnings growth on a year-over-year basis. Nvidia's data center segment led the strong growth, generating $35.6 billion in revenue, up 93% year-over-year. Automotive revenue more than doubled to $570 million, while the gaming and AI PC segment saw a decline, reporting $2.5 billion in revenue, down 11% from the prior year. The company's full fiscal-year revenue reached $130.5 billion, marking a 114% increase year-over-year and setting a new company record. "We've successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries," said Jensen Huang, founder and CEO of Nvidia. See Also: Trump's Plan For Canada, Mexico, China Tariffs To Start March 4 Could Shake Stock Market Looking ahead, Nvidia provided first-quarter revenue guidance of $43 billion, plus or minus 2%, versus estimates of $41.75 billion. The company also expects non-GAAP gross margins to reach 71%. Following Nvidia's quarterly results, several analysts raised price targets. Truist Securities increased its target from $204 to $205 while maintaining a Buy rating. Morgan Stanley raised its target from $152 to $162 with an Overweight rating. BofA Securities lifted its target from $190 to $200 while maintaining a Buy stance. Needham reiterated its Buy rating with a $160 price target and Rosenblatt maintained a Buy and price target of $220. NVDA Price Action: Despite the positive financial performance and upward price target revisions, Nvidia shares are under pressure on Thursday. Although the stock traded above $135 in early trading, it was down 3.18% at $127.09 at the time of publication, according to Benzinga Pro. Read Next: Q4 GDP Holds At 2.3% After Minor Revision In Second Estimate Image via Shutterstock. NVDANVIDIA Corp$126.89-3.34%OverviewMarket News and Data brought to you by Benzinga APIs

Why Nvidia Stock Rallied Wednesday Ahead of Its Important Financial Report | The Motley Fool

The catalyst that sent the artificial intelligence (AI) chipmaker higher was a report that suggested demand remained high for the company's processors in an important market. One of the biggest developments for the chipmaker in recent months was the release of a next-generation AI model from start-up DeepSeek in China. The system was reportedly developed for a much lower cost than existing models. Some investors jumped to the conclusion that this would result in lower demand for Nvidia's cutting-edge AI processors, sending its stock swooning. A report from Reuters today suggested that orders for Nvidia's H20 chips jumped as some of the biggest companies in China scramble to increase their AI offerings. The report named Tencent (OTC: TCEHY), Alibaba (NYSE: BABA), and TikTok owner ByteDance as companies that have "significantly increased" orders of Nvidia's H20 chip, which was developed to meet U.S. export restrictions to the Chinese market. Not only are these companies among the biggest users of AI in that country, but they are also among the most widely used cloud infrastructure providers in China, suggesting demand for Nvidia's chips remains strong. This is a big day for Nvidia investors. The company is scheduled to release the results of its fiscal 2025 fourth quarter (ended Jan. 26) after the market close today. The results, as well as management's commentary during the earnings call with analysts, will provide investors with the latest insights into the continuing demand for AI and -- more specifically -- demand for Nvidia's recently released AI-centric Blackwell processor. Management has forecast revenue growth of about 70% year over year, while analysts' consensus estimate is calling for roughly 73% growth in the quarter. Even after notching gains of 448% over the past three years, Nvidia stock is still reasonably priced, selling for less than 30 times next year's earnings estimates. That could change after Nvidia reports today. Stay tuned.

Why Nvidia Stock Continues to Plunge Ahead of Earnings | The Motley Fool

Nvidia (NVDA -0.50%) will release one of the most highly anticipated earnings reports tomorrow afternoon. The artificial intelligence (AI) chip leader has outpaced its own guidance by a wide margin all year. Yet investors have been selling the stock in droves lately. Shares are down more than 11% in the last month, including a 3% decline today, as of 11:37 a.m. ET. The catalyst for today's drop may be from investors thinking Nvidia's trend of exceeding sales forecasts may soon come to an end. That's because the Trump administration is reportedly seeking to further tighten restrictions on U.S. semiconductor chip sales to China. Nvidia has repeatedly beaten its own sales expectations as large tech companies line up to purchase its advanced AI chips and software platforms. Companies need Nvidia's advanced hardware to build smarter and more complex AI models. Driven by its robust data center segment, Nvidia has beaten the midpoint of its own sales guidance by at least $2 billion in each of its first three fiscal 2025 quarters. It expects fiscal fourth-quarter sales of about $37.5 billion. That's up from the $35.1 billion it reported in the prior quarter. It's also 70% higher than the $22.1 billion in revenue recorded in the prior year period. But reports today say that the Trump administration is looking to tighten the controls on advanced AI chip sales to China begun under former President Biden. Nvidia has been able to continue selling its older or modified chips under the previous restrictions as demand remained strong even for that hardware. Tighter restrictions meant to limit China's technological prowess could impact Nvidia's sales growth. New regulations haven't yet been announced, so CEO Jensen Huang may not even discuss the topic with Nvidia's earnings report tomorrow. But some investors may be happy taking profits after Nvidia's amazing 440% gain over the last three years. I think Nvidia's market for those chips, as well as its other products, is big enough to navigate any of those headwinds, and more growth lies ahead.

Nvidia Stock 'Quite Cheap' Ahead Of Q4 Earnings: Analyst Says 'Growth Story Is Intact' - NVIDIA (NASDAQ:NVDA)

Semiconductor giant Nvidia Corporation NVDA is likely to report record financial results and highlight strong demand from technology companies when the company reports fourth-quarter financial results after market close Wednesday. Nvidia Earnings Estimates Analysts expect Nvidia to report fourth-quarter revenue of $38.05 billion. That's up from $22.1 billion in last year's fourth quarter, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in nine straight quarters. Analysts expect the company to report earnings of 84 cents per share for the fourth quarter -- up from 52 cents per share in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in eight straight quarters. Revenue and earnings per share from Nvidia could once again be company records and continue the company's high growth across several business segments. Guidance from the company given after third-quarter results calls for fourth-quarter revenue to be $37.5 billion plus or minus 2%. Read Also: Nvidia Takes On Scalpers By Offering RTX 5090, 5080 Founders Edition GPUs To Loyal Users What Analysts Are Saying Reports of large Capex spending by other technology companies should bode well for Nvidia's results and guidance, Piper Sandler analyst Harsh Kumar said in a recent investor note. The analyst reiterated an Overweight rating with a $175 price target. "We are expecting NVDA to nicely beat January quarter estimates to the tune of $1.8 billion on the top line and revert back to the greater than $2 billion cadence beat that the company had maintained before its transition to Blackwell," Kumar said. The analyst said demand for Blackwell is strong and should lead to a beat and raise quarter for Nvidia. "We continue to believe NVDA is sold out for CY2025 and we see increasing cadence of beats of magnitude as the year progresses." Kumar said reports from Microsoft, Meta Platforms, Alphabet and Amazon show that demand for Nvidia products is large and could lead to increased guidance from the company. "This tells us that interest in AI Capex spend remains robust and that NVDA's growth story is intact." Truist analyst William Stein said Nvidia is the AI leader and the stock in the sector to own. The analyst maintained a Buy rating on Nvidia with a $200 price target. Stein expects Nvidia to deliver upside to consensus estimates for the fourth-quarter and first quarter guidance. With Nvidia stock trading at 23x calendar-year 2026 earnings per share, the analyst said Nvidia stock is "quite cheap." The analyst's concerns are Hopper purchases slowing down, production challenges and Deepseek causing a slowdown to capex spending. Stein said commentary from large technology companies suggest spending on products from Nvidia will be just fine. "We expect a solid quarter, outlook & commentary," Stein said. The analyst also expects Nvidia to discuss emerging AI models, data processing techniques and physical AI for items like robotics. "We expect this will be a positive catalyst for the stock." Morgan Stanley analyst Joseph Moore recently called a pullback in Nvidia stock related to the rise of Chinese AI competitor DeepSeek a buying opportunity. Moore maintained an Overweight rating on Nvidia with a $152 price target. The analyst said DeepSeek marks a "strong evolutionary upgrade in the AI space," but comes in a space where Nvidia continues to improve AI performance and will continue to do so. Nvidia could have several headwinds from the DeepSeek emergence including further export controls, a different financing environment for AI spenders and investor sentiment on the company turning negative. "While we have several reasons to believe that large cluster builds will continue, mostly because the architects of those clusters are insisting so loudly every day, the cynicism is overwhelming," Moore said. Key Items to Watch: Freedom Capital Markets Chief Global Strategist Jay Woods said there are likely three items investors will be watching for in Nvidia's quarterly results. Woods said Blackwell chip, DeepSeek questions and guidance top the list of items to watch. For Blackwell, Woods said analysts expect $38 billion in quarterly revenue and are also looking for guidance on future revenue. Woods questions if Nvidia CEO Jensen Huang will address the concerns from competitor DeepSeek during the earnings commentary and earnings call. The market strategist said when it comes to Nvidia's guidance, it will be two-fold. "First, given the continued capex spending by major customers in Meta, Amazon and Alphabet, can they meet the demand? Secondly, they have a history of upping production for future earnings. Will this trend continue or are there growth concerns given global competition and inflation concerns at home?" Woods asks. Revenue by segment could be another key area to watch. The data center segment posted a quarterly record for revenue in the third quarter. Data center revenue was up 112% year-over-year. The Gaming & AI PC and Professional Visualization segments had year-over-year growth of 15% and 17% respectively. The gaming segment got a call-out as having a "great quarter" in the third quarter and seeing strong back-to-school sales. The segment's holiday sales impact could show through in the fourth-quarter results. Price Action: Nvidia stock is down 2.7% to $126.81 on Tuesday versus a 52-week trading range of $75.61 to $153.13. Nvidia stock is down 8.3% year-to-date in 2025 and up over 60% in the last year. Read Next: Humble Beginnings: Like NVIDIA, Reddit Was Founded Inside A Restaurant Image: Shutterstock NVDANVIDIA Corp$127.64-2.03%OverviewMarket News and Data brought to you by Benzinga APIs

Nvidia bounced from the $3 trillion market cap club after falling more than 8%

The chipmaker's shares slumped more than 8% on Thursday following quarterly earnings, wiping out about $273 billion in value and giving the company a market cap of $2.94 billion. The S&P 500 index fell 1.6% and the Nasdaq dropped 2.8%. Nvidia is still the second most valuable U.S. tech company, behind Apple, and ahead of Microsoft, one of its biggest customers. So far in 2025, Nvidia shares have lost 10% of their value, as the company faces investor concerns about export controls, tariffs, more efficient artificial intelligence models, and an overall slowing pace of growth. Even after the latest slide, Nvidia is still worth five times more than it was two years ago, at the start of the generative AI boom. It first hit a $3 trillion market cap in June 2024. Nvidia reported results on Wednesday that topped analysts' estimates across the board, with revenue jumping 78% from a year earlier to $39.33 billion. The company's data center revenue, which includes its market-leading graphics processors for AI workloads, soared 93% on an annual basis to nearly $36 billion. Nvidia signaled that it was going to have a strong quarter to kick off its fiscal 2026, and that production issues for its next-generation chip, Blackwell, had been mostly resolved. In recent weeks, Nvidia CEO Jensen Huang has said that the demand for its chips will remain strong as next-generation AI models that think "about how best to answer" questions step by step will require much more computing power. "The amount of computation necessary to do that reasoning process is 100 times more than what we used to do," Huang told CNBC's Jon Fortt in an interview on Wednesday. Nvidia counts on billions of dollars of infrastructure spend annually from the largest tech companies in the world for an outsized amount of its revenue. On Wednesday, Huang said that large cloud service providers -- companies like Microsoft, Google, and Amazon -- accounted for about half of Nvidia's data center revenue.

Watch These Nvidia Price Levels as Stock Seesaws After Earnings Report

Nvidia (NVDA) shares seesawed in extended trading on Wednesday after the AI investor favorite posted better-than-expected quarterly results and issued a strong outlook amid booming demand for its advanced AI chips. The company saw fourth-quarter revenue surge 78% to $39.33 billion from a year earlier, with the company's next generation Blackwell chips accounting for nearly 30% of net sales during the period. On that front, Nvidia's CFO Colette Kress said the company expects to significantly ramp up sales of Blackwell chips in the first quarter. Executives also pointed out that the company's new chips would be used to deliver AI software and applications, broadening their current use of developing and training AI. Nvidia shares, which gained nearly 4% during today's regular trading session, are roughly flat on the year through Wednesday's close but have climbed 67% over the past 12 months. The stock fell 1.5% to $129.32 in extended trading, after fluctuating between gains and losses following the release of the quarterly report and during the conference call with company executives. Meanwhile, the relative strength index gives a reading of around 50 to indicate neutral conditions, while declining trading volumes in recent weeks suggest that larger market participants remained on the sidelines ahead of today's report. Let's identify key support levels and overhead areas that investors may be tracking. The first nearby support level to watch sits around $130. This area, just 1% below Wednesday's closing price, may attract buying interest near a trendline that connects peaks in June, July and August with a series of comparable price points on the chart between December and February. A breakdown below this important technical level could trigger a fall to the $113 level, a location on the chart where the shares may find support near the low of the bullish engulfing pattern. Further selling opens the door for a more significant correction down to around $96, about 27% below Wednesday's close. Such a drop could see investors looking for buying opportunities near the prominent March peak, which closely aligns with the August sell-off trough. A move higher after earnings could see the chipmaker's shares revisit the crucial $153 level. Tactical traders who have accumulated shares through the recent consolidation phase may look for exit points near the stock's record high. Investors can predict a longer-term overhead area to monitor by using the bars pattern tool. When applying the analysis to Nvidia's chart, we take the stock's trending move from October 2023 to March last year and overlay it from this month's low, which forecasts a bullish target of around $255. We selected this prior move as it also commenced following the formation of a bullish engulfing pattern after a brief consolidation period, providing clues to where a new uptrend may be headed if price action rhymes. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

The last few analysts are commenting before Nvidia's big earnings this week. What they're saying

Wall Street's attention is turning to Nvidia ahead of the chipmaker's earnings report this week. The megacap technology stock, which has been a symbol of the artificial intelligence boom and a retail investor favorite , shares results after the bell on Wednesday. Given Nvidia's size as a company worth more than $3 trillion in market cap, its post-earnings moves will likely drive the broader market. The report takes on even more importance in the wake of Friday's market sell-off, which was catalyzed in part by a TD Cowen report that raised concerns around fellow Big Tech stock Microsoft and data centers. In turn, the note cast doubt more broadly on the AI trade. The S & P 500 slid 1.7% in Friday's session, while the tech-heavy Nasdaq Composite dove 2.2%. Wall Street is expected to follow Nvidia's quarterly results and commentary from CEO Jensen Huang during the company's earnings call closely. Nvidia has become known for beating analyst expectations and raising its forecasts. However, some analysts said there is the potential for Nvidia to provide a lighter hike to guidance than in previous quarters. NVDA 1Y mountain Nvidia, 1-year Beyond headline numbers and the company's outlook, Wall Street's focus is on Nvidia's Blackwell and Hopper chips. The earnings print also comes at an important point for the stock. Shares are near flat this year after surging more than 230% and 170% in 2023 and 2024, respectively. Most analysts have a buy rating with a price target suggesting the stock can rally nearly 30%, per LSEG. Here's how some are thinking about the report and how to play the stock, as shared in notes with clients released over recent days: Cantor Fitzgerald analyst C.J. Muse: "The beat and raise for NVDA is becoming clockwork at this point - essentially beating the guide by $2B and guiding revenue growth of + $2-2.5B Q/Q, a trend that has generally held since early 2023. The problem with this consistency ... the bar has now been reset and standard beats/ raises are no longer being rewarded. And this quarter, we look for NVDA results/guide to fall in line with these recent trends, offering a solid beat, but only a very modest raise to consensus (with upside and a potential breakout from the recent trend more likely into the July Q with Blackwell in full swing)." Morgan Stanley analyst Joseph Moore: "We continue to think that near-term fundamentals are strong - more so than 60 days ago as we have seen improvements on multiple levels. Earlier in the quarter, we expected the company to beat expectations for January and guide to consensus for April, but thought it would have to work to do so, because we saw Hopper demand as slow, and early growing pains around Blackwell, particularly the GB200 form factor. As we articulated a couple of weeks ago ... we are now more comfortable on both issues." Melius Research analyst Ben Reitzes: "We'll want to hear CEO Jensen Huang's views from DeepSeek to China to the ramp of Blackwell. The stock is in a rut, basically flat for a full 8 months now and down 10% from its high due to these concerns. It is well known that Nvidia was already dealing with a product transition to Blackwell (B100s, B200s, GB200s). This transition has been a little bumpier than anticipated in terms of 'constraints' and complexity (requires liquid cooling). However, sales prospects still seem great by F2Q26 - and there is already a lot of chatter about the Blackwell Ultra (GB300), likely to be unveiled at its GPU Technology Conference (GTC) in March and shipping by CY-end. All told, it could mean that Nvidia guides more 'in line' for F1Q26 than usual for a quarter or even two before a really big bump." Raymond James analyst Srini Pajjuri: "We won't be surprised if management 'soft' guides the next few quarters in case of any near term weakness due to supply. We are not overly concerned about the impact from efficient models such as DeepSeek and/or competition from ASICs, and view any pullback as an opportunity, especially heading into GTC conference." Rosenblatt analyst Hans Mosesmann: "We expect a modest beat and raise for Nvidia's January quarter and March quarter outlook versus consensus estimates. All eyes will be on Blackwell commentary, where we see management reaffirming Blackwell shipments beginning in F4Q25 and demand continuing to exceed supply through FY26. We see shipments of Blackwell accelerating as we progress through the year, with a stronger F2H26."

CEO Jensen Huang Just Uttered 8 Words That Every Nvidia Investor Should Hear | The Motley Fool

Nvidia just had another blockbuster quarter and its chief executive had wonderful news for shareholders. If there's one company that has been at the epicenter of the artificial intelligence (AI) revolution, Nvidia (NVDA -8.48%) is it. The company's graphics processing units (GPUs) provide the computational horsepower that underpins the vast majority of AI processing and has been the biggest contributor to the accelerating adoption of this groundbreaking technology. Being the poster child for AI can be a double-edged sword, however. In late January, reports suggested that Chinese start-up DeepSeek had developed a cutting-edge AI model with older-generation GPUs and for a much lower cost. Some Nvidia investors saw this as a harbinger of doom for the company, fearing that demand for its processors could come to a screeching halt. The chipmaker delivered its financial report after the market close on Wednesday and the blockbuster results, combined with commentary from management, have largely put those fears to rest. Let's take a look at the results, what it reveals about the future, and what CEO Jensen Huang said that every shareholder needs to hear. Despite the misgivings, expectations were high heading into Nvidia's fiscal 2025 fourth quarter (ended Jan. 26), and the company delivered. Nvidia generated record revenue of $39.3 billion, up 78% year over year and 12% sequentially. This fueled adjusted earnings per share (EPS) of $0.89, which surged 71%. For context, analysts' consensus estimates were calling for revenue of $38.16 billion and EPS of $0.85, so Nvidia cleared both hurdles with ease. Driving the robust results was record data center demand, which continues to fuel its growth. Revenue from the segment -- which includes chips used for data centers, cloud computing, and AI -- soared 93% year over year to $35.6 billion, thanks to relentless demand for AI. If there was one issue that was of potential concern to investors, it was likely the somewhat gradual decline in Nvidia's gross margin, which has persisted for several quarters. Gross margin edged lower to 73% in Q4, down from 76% in the prior-year quarter and 74.6% in Q3. CFO Colette Kress said this was "as expected," citing the rollout of its AI-centric Blackwell chip. She went on to say the company expects gross margin to improve later this year, returning to the "mid-70s." Nvidia's cash stockpile also grew dramatically over the past year, with cash and marketable securities of $43.2 billion, an increase of 66%. Operating cash flow of $16.6 billion jumped 44%. The biggest headline was the commentary provided by Jensen Huang during the call with analysts with respect to the release of DeepSeek late last month. While many investors hit the panic button, the chief executive explained that developments of this nature would increase demand for Nvidia's processors, not reduce it. "DeepSeek-R1 has ignited global enthusiasm. It's an excellent innovation. But even more importantly, it has open-sourced a world-class reasoning AI model." He also uttered eight words that should be of particular interest to Nvidis shareholders: "Future reasoning models can consume much more compute." Put another way, the evolution and continuing adoption of AI will almost certaintly boost demand for Nvidia's state-of-the-art AI chips. To that end, management expects the company's growth spurt to continue. Nvidia is guiding for record first-quarter revenue of $43 billion, which would represent year-over-year growth of 65%. That was ahead of Wall Street's expectations of roughly $42 billion, but it seemed that investors could only manage a collective to yawn at the results. If you still have doubts about Nvidia's future potential, consider this: The generative AI market alone could generate economic impact of between $2.6 trillion to $4.4 trillion in the coming years, according to global management consulting firm McKinsey & Company. As the leading provider of AI-centric chips, Nvidia is well-positioned to continue to benefit from this trend. Despite its growth spurt over the past several years, the stock is still attractively priced, selling for roughly 28 times next year's expected earnings. That's a slight premium, but it's still an attractive price to pay for a company that's expected to increase both its revenue and EPS by more than 50% in its fiscal 2026.

Nvidia Stock Is Tumbling Today. Is This a Chance to Buy? | The Motley Fool

One of the most highly anticipated quarterly reports on Wall Street was provided by Nvidia (NVDA -2.63%) last night. And the artificial intelligence (AI) darling didn't disappoint. Data center revenue continued to surge higher, and CEO Jensen Huang sounded as optimistic as ever. Yet the stock declined as much as nearly 5% today. While it clawed back some of that drop, shares remained 3.5% lower as of 11:45 a.m. ET. That extended its losses in 2025 after an amazing 171% return in 2024. Based on the state of the business, though, the recent decline in the stock might just be a gift for long-term investors. Management previously guided investors to expect revenue of about $37.5 billion in the fourth quarter. As has been the case all last year, the company exceeded that mark with sales of $39.3 billion. Full-year revenue more than doubled year over year. But investors are looking ahead to figure out when that revenue growth might slow. Nvidia sees sales of about $43 billion in its current quarter. That would represent sequential growth of less than 10% compared to the mid-teens growth rate it had been reporting most of last year. Investors also noticed something Huang said in the conference call for investors. "Data center sales in China remained well below levels seen on the onset of export controls. [And] the market in China for data center solutions remains very competitive," he said. Another concern is a decline in profitability. Gross margins in the current fiscal first quarter are expected to be about 71%. That compares to 75% in the fiscal year ended Jan. 26. But Nvidia is still showing impressive growth and profits in the data center business. At the same time, its automotive and robotics segment is also beginning to take off. Quarterly growth there has been impressive. While it still pales in comparison to data center AI sales, this could be the catalyst for Nvidia's next phase of growth. Investors would be wise not to bet against Nvidia.

Jensen Huang Just Delivered Fantastic News for Nvidia Investors | The Motley Fool

Artificial intelligence (AI) stocks have driven gains in this bull market, and one company in particular has been at the head of the pack: Nvidia (NVDA -1.29%). The tech powerhouse is the world's top designer of AI chips and has built an empire of related products and services -- importantly, this portfolio has produced double- and triple-digit revenue growth well into the billions of dollars quarter after quarter. And, once again, in the company's latest earnings report, Nvidia showed it could keep up the momentum. The chip leader reported record quarterly and full-year revenue -- and earnings roared past analysts' estimates. All of this is great, but investors in recent times have wondered how long Nvidia's showstopping growth actually may last. For example, when start-up DeepSeek recently announced it trained its model on low-cost chips, investors worried Nvidia's biggest customers could follow -- and that would lead to lower revenue for the chip designer down the road. But investors may not have to worry about that because Nvidia chief Jensen Huang just delivered some fantastic news. Let's check it out. First, though, here's a bit of background on Nvidia's path so far and how that's translated into earnings growth. The company dominates the AI chip market, designing the fastest graphics processing units (GPUs) to power key tasks such as the training and inferencing of models. Nvidia also has expanded into areas such as software and networking, offering customers a full suite of products to help them along the AI development path. As mentioned, this has lifted earnings over the past several years. As the world's biggest tech companies rush to build up AI infrastructure and programs, they've loaded up on the most powerful tools -- and these are found at Nvidia. The AI giant said in the recent earnings call that major cloud service providers represent about half of the company's data center business, and revenue from these customers is two times higher than it was in the year-earlier period. All of this has helped the momentum continue in the fourth quarter and fiscal 2025 full year. Nvidia reported record quarterly revenue of more than $39 billion, a 78% increase year-over-year. And annual revenue surged 114% to more than $130 billion -- another record. As it's done quarter after quarter, Nvidia's earnings beat analysts' estimates, with earnings per share coming in at 89 cents versus expectations of 84 cents and revenue surpassing the $38 billion forecast. Now, let's consider this fantastic news delivered by Huang -- and this should dispel concerns about companies turning to cheaper training solutions. Nvidia in the quarter launched its new Blackwell architecture, a customizable platform featuring seven different chips, many networking options, and more. In this first quarter on the market, Blackwell brought in $11 billion in revenue and represented the company's fastest production ramp ever. But the even bigger news is this platform is well-suited to a particular task that should keep customers coming back to Nvidia: inferencing. And with a focus on "reasoning," the inferencing of today and tomorrow powers the processing of information and the "thinking" step that allows the large language model (LLM) to offer answers to complex questions. The amount of compute needed for this long-thinking reasoning is 100 times more than the compute needed by LLMs for responses in the earlier days of AI. "The vast majority of our compute today is actually inference, and Blackwell takes all of that to a new level," Huang said during the company's earnings call. "We designed Blackwell with the idea of reasoning models in mind." As a result, Blackwell offers as much as 25 times higher token throughput -- tokens are bits of data processed -- and 20 times lower cost versus its predecessor, Hopper. The DeepSeek news late last month set off a decline in Nvidia stock as investors worried about a potential flight of customers to cheaper training options. The stock slipped nearly 8% from that time through Feb. 26. But, considering tech giants' commitments to AI spending and desire to win in AI over time, it's likely they'll stick with the market's strongest tools -- that means they probably won't switch to low-cost chips for their projects. A few weeks ago, Nvidia customer Meta Platforms, for example, said the company will spend as much as $65 billion in infrastructure this year and will end the year with 1.3 billion GPUs. And Huang once again emphasized the enormous demand for Blackwell in the quarter, calling it "extraordinary." On top of this, Nvidia's dominance in inference -- or the actual performance of LLMs -- reinforces the idea that the company is not set to lose business. In fact, it's likely heading for yet another wave of major growth ahead thanks to its strengths in this key area. And that's why, especially at today's valuation of 29x forward earnings estimates, Nvidia stock makes a solid buy.

Why Nvidia's earnings report could be the biggest market mover this week

Nvidia (NVDA) shares are under scrutiny as the company prepares to release its earnings report after Wednesday's closing bell. The chipmaking giant is anticipated to report a 73% increase in fourth-quarter revenue year-over-year and a net income of $21.08 billion, compared to $12.84 billion in the previous year. Nvidia shares have traded flat for the year but have increased by 12% this month as of Friday's close. Analysts continue to express bullish sentiments regarding the stock, driven by significant spending on AI infrastructure by big tech hyperscalers. Despite the positive momentum, the stock saw a decline of 4.1%, closing at $134.43 on Friday amidst a broader sell-off on Wall Street. Nvidia shares have been consolidating within a descending channel since mid-December, characterized by declining trading volumes. Recently, a bearish engulfing pattern formed on the chart, indicating a potential downward movement as the earnings date approaches. This same candlestick pattern had previously emerged on two occasions since the stock reached its record high in early January, both times leading to further declines. The relative strength index (RSI) has mirrored the share price, exhibiting lower highs since the initiation of the descending channel, which suggests a decrease in buying momentum. Several critical support and resistance levels are notable for Nvidia's stock chart. The first support level to watch is around $130, where shares could find support near a trendline connecting the prominent August peak with troughs from December and January. If the stock falls below this level, it may drop to around $113. This area aligns with a recent swing low and corresponds to a historical trading range dating back to May 2023. In case of a substantial post-earnings downturn, the $102 level may become significant, coinciding with the opening price of the late May breakaway gap and a cluster of prices near the August and September lows. On the resistance side, a breakout above the descending channel's upper trendline could lead to an attempt to reach the $153 level, which corresponds to the stock's all-time high (ATH). Utilizing the measured move technique, investors can project a bullish target above the ATH. This involves calculating the width of the descending channel and adding that amount to the pattern's upper trendline. For instance, adding $32 to $142 suggests a target of $174, representing nearly a 30% increase from Friday's closing price. Despite facing challenges from valuation levels in comparison to other tech giants, such as Tesla (TSLA) trading at 121 times forward earnings and Amazon (AMZN) at 36 times, Nvidia's position remains robust. Market analysts, including KeyBanc's John Vinh, assert that Nvidia is uniquely positioned to capitalize on the ongoing growth of AI and machine learning within data centers. Vinh notes that Nvidia has established significant barriers to entry through its CUDA software stack, limiting competitive threats and affirming its dominance in rapidly expanding cloud and enterprise workloads. As Nvidia's earnings report approaches, options traders forecast a potential 7.7% price movement following the announcement, compared to an average gain or loss of 9.2% observed after the past eight quarterly reports. The overall fluctuations in the S&P 500 during these periods averaged 0.8%, contrasting with a mean daily move of 0.6% over the past two years. A variety of upcoming market catalysts, including tariff negotiations and government funding deadlines, could contribute to increased volatility in the weeks following the earnings release. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

What Analysts Think of Nvidia Stock Ahead of Earnings

Analysts are widely bullish on the AI chipmaker's stock, with all but one of the analysts tracked by Visible Alpha issuing a "buy" or equivalent rating. Nvidia (NVDA) is set to report fourth-quarter results after the market closes Wednesday, with analysts widely bullish on the AI chipmaker's stock. All but one of the 18 analysts covering the stock tracked by Visible Alpha have issued "buy" or equivalent ratings, with one analyst giving the stock a "hold" rating. Their consensus price target of about $175 would imply 32% upside from Monday's intraday price. Wedbush and Oppenheimer analysts, who reiterated $175 price targets Thursday, suggested booming demand for the company's advanced chips as Big Tech firms ramp up spending on AI infrastructure could lead to another strong quarter. Nvidia is projected to post record quarterly revenue of $38.34 billion, up 73% year-over-year, according to estimates compiled by Visible Alpha. Net income is expected to climb to $21.1 billion, from $12.84 billion a year earlier. UBS analysts, who maintained a $185 price target, noted "investor expectations having crept up a bit recently," and added supply chain improvements could mean higher sales of Nvidia's Blackwell line. UBS nearly doubled its estimate for Blackwell's contribution to fourth-quarter revenue to $9 billion, up from $5 billion previously. Oppenheimer also indicated the rapid rise of Chinese AI startup DeepSeek could ultimately prove "positive" for the chipmaker, as competition pushes Nvidia's American clients to step up their efforts in the AI race instead of pulling back. Nvidia shares edged 1% lower to $132.68 in intraday trading Monday. They've gained about two-thirds of their value over the past 12 months.

Nvidia Is Sinking Today -- Is the Stock a Buy? | The Motley Fool

Nvidia (NVDA -2.26%) stock is heading lower in Tuesday's trading. The company's share price was down 1% as of 1 p.m. ET against the backdrop of a 0.5% decline for the S&P 500 index and a 1.1% decline for the Nasdaq Composite index. The artificial intelligence (AI) leader's stock had been down as much as 4.5% earlier in trading. Nvidia stock is slipping today as investors consider the potential impacts from new tariffs, new Chinese chip sanctions, and other pressures. The tech giant is also due to report its fourth-quarter report after the market closes tomorrow, and investors are feeling some jitteriness when it comes to valuation profiles for AI stocks. Nvidia's fourth-quarter release tomorrow is poised to be one of the biggest stock market events in 2025 so far. The average analyst estimate calls for the business to post net income of approximately $21.1 billion on sales of over $38 billion. The company's forward guidance will also be under the microscope and treated as a key indicator for overall growth in the AI market. Investors are on the edge of their seats. A recent report that Microsoft is cutting back on some of its data center expansion plans has raised growth concerns, and Nvidia's Q4 report has taken on even more significance following the market disruption caused by the DeepSeek R-1 model in July. To summarize, there are a lot of catalysts on the near horizon that could cause significant volatility for Nvidia stock. Accordingly, the stock probably isn't a good fit for investors without high risk tolerance right now. On the other hand, the company continues to occupy a leadership position in the graphics processing unit market at the heart of the AI revolution, and it's still in the early stages of expanding its presence in categories including software, processing services, and robotics. The company's advantages in key artificial intelligence categories are significant, and these technologies still look poised for massive long-term growth. Investors should move forward that Nvidia stock has the potential to be volatile in the near term, but it looks like a worthwhile buy-and-hold investment on recent pullbacks.

Nvidia Analyst Sees 'Significant Upside' For Stock With Favorable Risk/Reward - NVIDIA (NASDAQ:NVDA)

NVIDIA Corporation NVDA analysts see strong Blackwell demand and improved guidance, brushing off several concerns for the semiconductor company after its fourth-quarter financial results. The Nvidia Analysts: JPMorgan analyst Harlan Sur reiterated an Overweight rating on Nvidia with a $170 price target. Rosenblatt analyst Kevin Cassidy reiterated a Buy rating with a $220 price target. Needham analyst Quinn Bolton maintained a Buy rating with a $160 price target. KeyBanc analyst John Vinh maintained an Overweight rating with a $190 price target. JPMorgan on NVDA: Fourth quarter financials reflected solid results with guidance showing continued demand that outstrips supply, Sur said in a new investor note. The analyst said Blackwell shipments are expected to ramp higher through the year based on management commentary. "Demand for Blackwell is very strong and will continue to outstrip supply for several quarters. We believe the team did a good job on addressing AI model innovations like DeepSeek," Sur said. Sur said Nvidia did a good job executing across all segments. The analyst said the first half of the year is typically seasonally weaker than the second half, but strong demand for PC gaming, data center and automotive could offset seasonal weakness. "We anticipate significant upside in the shares, driving our Overweight rating." Read Also: Nvidia CEO Jensen Huang Doesn't Wear A Watch After A Gardner Taught Him The Secret Of Time Rosenblatt on NVDA: The semiconductor company reported a strong beat and raise in the fourth quarter, Cassidy said in a new investor note. The analyst said the improved guidance comes with better-than-expected Blackwell shipments of $11 billion versus prior guidance of "several billion." "While investors may nitpick the magnitude of the beat, gross margin pressure, and temporary Networking weakness, we view these as near-term fluctuations," Cassidy said. The analyst said GTC in mid-March now serves as the next catalyst for Nvidia stock. "We anticipate updates on NVIDIA's technology roadmap and new AI inference use cases to drive further excitement." Cassidy said non-GAAP gross margins of 73.5% were in line with estimates, and the decline comes as the company transitions to higher-cost systems within the Data Center business segment. The analyst raised estimates for revenue and earnings per share for the first quarter, fiscal 2026 and fiscal 2027 after the financial results. Needham on NVDA: Blackwell is ramping at a record pace and could push aside supply chain noise, Bolton said in a new investor note. "Initial Blackwell revenue is well above expectations," Bolton said. The analyst said the strong Blackwell demand comes a quarter after overheating rumors and on the heels of DeepSeek concerns for the sector. "We aren't surprised to see supply chain impacts, which are coming across better than feared in our view." Bolton said Nvidia stock is a buy, thanks to its attractive valuation and favorable risk/reward profile. KeyBanc on NVDA: Fourth quarter results and guidance were solid for Nvidia, Vinh said in a new investor note. The analyst said Nvidia brushed off concerns from DeepSeek during the quarter. Management said DeepSeek could be a net positive for the demand side with learning demand for compute higher than pre-training. "Given recently released earnings and guidance, we're encouraged by these results and are fine-tuning ests." Vinh said. Vinh noted that Nvidia has sought to diversify with growth in high-performance computing, automotive and data center, segments that "should drive meaningful growth over the next few years. "We see limited competitive risks and expect NVDA to continue to dominate one of the fastest growing workloads in cloud and enterprise." NVDA Price Action: Nvidia stock is down 4% to $126.00 on Thursday versus a 52-week trading range of $75.61 to $153.13. Nvidia stock is down 8.7% year-to-date in 2025 with shares up 60.5% over the last year. Read Next: Does Jensen Huang Check Nvidia Stock Price Daily? Photo: Evolf/Shutterstock.com NVDANVIDIA Corp$125.68-4.27%OverviewMarket News and Data brought to you by Benzinga APIs

Nvidia earnings are coming. Here's what to expect after the DeepSeek shock

Amazon takes creative control of the James Bond movie franchise The chipmaker's stock was down 4% to $134.40 per share at Friday's market close. The company is expected to report revenue of $38.1 million, according to analysts' estimates compiled by FactSet (FDS-0.78%). Net income is estimated to be $19.6 billion for the quarter ended in January, while analysts are expecting earnings of $0.85 per share. Nvidia set its fiscal fourth quarter revenue guidance at $37.5 billion, plus or minus 2%, during its last report. FactSet analysts are expecting Nvidia to set fiscal first quarter guidance at $42 billion. After Chinese artificial intelligence startup DeepSeek spooked investors in January, Nvidia's stock plunged 17%, wiping out nearly $600 billion in value -- a record loss for a U.S. company. In December, the Hangzhou-based AI startup released DeepSeek-V3, a model it said cost just $5.6 million to train and develop on Nvidia's reduced-capability H800 chips. Earlier this month, however, JPMorgan U.S. Equity Research (JPM-1.01%) analysts said in a report that DeepSeek is likely to have a positive impact on Nvidia. DeepSeek's demonstration of cost-efficiency and AI innovation will lead to "strong demand" for higher-performance graphics processing units, or GPUs, the analysts said. Therefore, Nvidia's leadership in advanced AI chips "should enable them to unlock new use-cases." Nvidia's stock experienced an extended rally last week and has recovered about 90% of the value lost during the sell-off. In a note on Friday, Jefferies (JEF-1.73%) analysts noted Nvidia's stock rally but said it "has been relatively range bound" since November due to fears from the broader market over "a slower ramp in Blackwell shipments." Despite concerns over supply chain issues for Blackwell, Jefferies analysts said they "believe" Nvidia will deliver a beat and a raise, although "the magnitude is likely to be smaller than the typical $2-3B range." "We continue to like NVDA during product ramps," Jefferies analysts said, adding that it expects "the beats to reaccelerate" in the second half of the year as Blackwell continues to expand.

Nvidia Is Jumping Today -- Is the Stock a Buy Right Now? | The Motley Fool

Nvidia (NVDA 4.68%) stock is gaining ground in Wednesday's trading ahead of its soon-to-be-released fourth-quarter results. The artificial intelligence (AI) leader's share price was up 4.6% as of 11:45 a.m. ET. At the same point in the day's trading, the S&P 500 was up 0.8%, and the Nasdaq Composite was up 1.2%. After a significant valuation pullback recently, Nvidia stock is bouncing back in today's trading. The company's share price is climbing higher in conjunction with promising demand news. Recent reports show that Chinese customers are increasing their orders for Nvidia's H20 processor for artificial intelligence. Nvidia stock is also climbing amid anticipation of the company's Q4 report. The AI hardware giant will publish its results for last quarter and year host an investor conference call after the market closes today. The average analyst estimate calls for the business to report non-GAAP (adjusted) earnings per share of $0.85 on revenue of roughly $38 billion. The report is poised to be a huge moment for Nvidia and the stock market at large. Nvidia stock could make some significant moves following today's report. In addition to the company's results for last quarter, investors are also going to be focusing on the company's guidance for the current period. Following the disruptive valuation impacts of the DeepSeek R-1 model in January and recent reports that Microsoft may be taking a more measured approach to expanding its data center footprint, Nvidia's outlook for Q1 will play a big role in shaping subsequent trading for the stock and overall valuation dynamics in the AI space. Despite the excitement being very high heading into the Q4 release, I continue to think that Nvidia stock is a good long-term investment. Even with efficiency improvements for AI training and inference, the demand outlook for ultra-high-performance processors remains very promising, and there's no indication that Nvidia is losing ground in the market. The company is also in the early stages of tapping into opportunities in processing services, software, and robotics. With these strengths in mind, Nvidia stock continues to look like a worthwhile buy.

NVIDIA Insiders Sell $1.6 Billion Of Stock, Buy Nothing A Year Ahead Of Today's Earnings

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. With NVIDIA due to report another highly crucial earnings results later today, data shows that insiders have sold as much as $1.6 billion in stock over the year heading into the results. Investor hype surrounding NVIDIA's shares and its ability to drive the AI revolution has meant that the stock become the most valuable in the world multiple times ahead of last month's DeepSeek selloff. However, since then, NVIDIA's shares have failed to regain their lost glory as investors remain on the sideline to gauge demand for its products before buying more stock. Since OpenAI publicly released ChatGPT, NVIDIA's shares have been on a tear and have been among the top performers on Wall Street. Since November 2022, they have gained 678% and led to many of the firm's employees becoming millionaires. The richest NVIDIA employee is CEO and founder Jensen Huang who owns 3.5% of the shares of the company that he set up in 1993. Huang is the 13th richest person in the world and is currently worth $113 billion. NVIDIA, on the other hand, is worth $3.1 trillion and is the second most valuable company in the world. Ahead of it is Cupertino, California, consumer technology giant Apple Inc, which leads by $600 billion on the market capitalization pyramid and is worth $4.7 trillion. However, NVIDIA sat at the top of the pyramid in January before the DeepSeek selloff recalibrated the stock market. Its shares lost 17% during the day, and while they have gained 6.9% since the DeepSeek bottom, the stock is yet to reach its previous highs. The firm's upcoming earnings report is expected to set the tone for its GPU demand and Blackwell availability for the rest of the year. So far, the consensus among investors is that Blackwell deliveries have been pushed into the second half of the year. NVIDIA's shares reflect the unease, as they have lost 9.62% in the days heading into the earnings. NVIDIA insiders also appear to have sold billions of dollars of stock over the year heading into the earnings. As per data shared on X, they have sold $1.6 billion of stock heading into earnings. Some notable sales include those by NVIDIA CEO Jensen Huang and chief financial officer Collette Kress. For instance, Huang sold $8.62 million of shares in mid-December when the stock was trading at $135 while Kress cumulatively unloaded $18.62 million worth of shares on the same day. Another notable insider that has sold the stock is NVIDIA's field operations lead Ajay Puri who has sold more than $40 million worth of shares. NVIDIA's less-than-stellar share price performance ahead of the earnings has made the stock quite cheap, according to investment advisory Evercore ISI. In a fresh investment note, the firm kept a $190 share price target and an Overweight rating on the shares as it shared that with a 30x forward-price-to-earnings multiple, NVIDIA's shares were the cheapest in its AI coverage universe.

Prediction: Nvidia Stock Will Surge After Feb. 26 for These 3 Reasons. | The Motley Fool

Nvidia (NVDA -4.05%) may be the most-watched stock on the planet these days. Though it's already climbed a mind-boggling 800% over the past two years, many investors and analysts think the stock still has plenty of room to run. This is thanks to the company's dominance in one of today's most promising growth areas: artificial intelligence (AI). This technology giant is the global leader in the AI chip market, and it's also built an entire ecosystem of related AI products and services. The world's biggest tech companies have flocked to Nvidia nonstop for access to these powerful tools. As a result, demand has soared, and earnings have followed. Nvidia has reported double- and triple-digit revenue growth in recent quarters and at high levels of profitability on sales -- with gross margin topping 70%. Now, as we head toward Nvidia's next catalyst -- the fourth-quarter and fiscal full-year 2025 earnings report on Feb. 26 -- I predict the stock is set to surge for the following three reasons. Let's check them out. The upcoming earnings report will be particularly important because, during the quarter, Nvidia launched its latest innovation: the Blackwell architecture. Blackwell is a customizable platform, including seven different chips, many networking options, and more. The platform's features are so exciting, promising greater efficiency, performance and security, that demand has surpassed supply. And this brings me to the reason why I'm optimistic about what Nvidia will say about the Blackwell rollout. The company has spoken many times over the past several months about the strength of demand, with chief Jensen Huang even calling it "insane" in a CNBC interview a few months ago. So, it's clear customers are lining up to get access to the product -- and are ready to wait for it if necessary. Nvidia also said during the latest earnings call that its visibility on supply had increased, and therefore the company in the fourth quarter is set to surpass its earlier forecast of several billion dollars in Blackwell revenue. So, considering these clues, I'm expecting more positive updates from the Blackwell launch. Last month, Chinese start-up DeepSeek announced that it had trained a model using Nvidia's lower-priced chips and spent only $6 million -- which sparked speculation tech giants would follow the example and decrease their AI budgets. And if these major Nvidia customers were to go for the cheaper chips, Nvidia would see a decline in revenue. Though Nvidia's stock fell about 16% in one trading session, the stock since has been on the path to recovery. And various pieces of evidence show the news isn't set to cause lasting damage. First, it's important to note that we're not even completely sure about how much DeepSeek actually spent. Consultant SemiAnalysis estimates DeepSeek invested more than $500 million for chips alone. So, without a clear picture of the investment involved, it's unlikely market leaders will follow DeepSeek. Second, these giants -- such as Meta Platforms and Alphabet -- recently reiterated their AI spending plans and continue to invest aggressively. On top of this, Wedbush's Dan Ives recently checked in with Nvidia customers, and none had altered their spending plans or AI strategies. So, the news that weighed on Nvidia stock a few weeks ago looks like a thing of the past -- and shouldn't hurt demand for the stock. Nvidia stock, after the recent declines, now is trading for about 31x forward earnings estimates -- down from more than 50x just a few weeks ago. Even at higher valuations, Nvidia made an interesting long-term buy, considering the company's market leadership and expansion into a vast array of AI products and services. So, at today's valuation, the company truly looks like a bargain. And at this level, Nvidia clearly could attract a broad range of investors, especially if the company delivers positive news during the upcoming earnings report. That's another reason why I predict Nvidia stock will soar after Feb. 26.

Nvidia Stock Offers 'Buying Opportunity' Below $100 - Supplier Woes Suggest Caution, Says Analyst - NVIDIA (NASDAQ:NVDA)

Nvidia Corp NVDA has been the poster child of the AI revolution, but cracks are showing as supplier delays and technical indicators flash warning signs. Analyst Beth Kindig, typically bullish on Nvidia, recently sounded the alarm after scrutinizing supplier commentary. The takeaway? The GB200 rollout might not be as smooth as expected and NVDA stock could feel the heat. Supplier Red Flags: Delays Mount Super Micro Computer Inc SMCI, a key Nvidia partner, trimmed its fiscal 2025 revenue guide, citing Blackwell GPU delays. CEO Charles Liang had previously expected 30% of racks to use direct liquid cooling (DLC) by mid-2025. That target has now quietly slipped to early 2026. Worse, SMCI admitted they can't ship Blackwell NVL systems in volume for the March quarter -- a red flag for Nvidia's near-term growth. Vertiv Holdings Inc VRT, another Nvidia ecosystem player, reported strong fourth quarter results but guided for softer first quarter growth, blaming "timing differences" in AI shipments. Meanwhile, PCIe 6.0 and PMIC suppliers, crucial for Blackwell systems, now expect volume deployments only in the back half of the year. Semtech's SMTC decision to pull guidance on active copper cabling further reinforces the narrative of a bumpy road. Read Also: AMD Reshapes Strategy, Plans $4 Billion Data Center Asset Sale While Doubling Down on GPUs NVDA Stock Technicals: Momentum Fades Chart created using Benzinga Pro NVDA stock has cooled off year-to-date, down 2.83%, despite a stellar 69.93% gain over the past year. The stock is struggling near its 50-day moving average, a key technical level that often signals whether bullish momentum can continue or falter. Trading volumes have thinned and the relative strength index (RSI) is around 50, indicating fading buying pressure. If NVDA stock breaks below $110, it could trigger a deeper pullback toward the $100 psychological support -- a level that aligns with Kindig's view of a potential "buying opportunity" if the stock dips further. Q4 Earnings Catalyst Or Reality Check? With earnings on deck (reports fourth quarter after market close on Wednesday), Nvidia faces a moment of truth. If management acknowledges the supplier delays, the stock could slip further. However, strength from Hopper and B200 systems might offset the near-term Blackwell hiccup. Investors should brace for volatility. Nvidia's AI dominance isn't in question, but the road ahead looks bumpier than bulls might like. Read Next: Nvidia Set For 'Clear Beat And Raise Special' As AI Demand Surges, Says Dan Ives NVDANVIDIA Corp$136.691.68%OverviewSMCISuper Micro Computer Inc$55.35-1.29%SMTCSemtech Corp$37.230.35%VRTVertiv Holdings Co$97.651.73%Market News and Data brought to you by Benzinga APIs

Big bang Nvidia Q4 earnings today; here's what you need to watch out for

Nvidia's fiscal year 2025 fourth-quarter earnings will be released on February 26, 2025. Analysts predict record revenue and strong performance in the AI market, as per Nasdaq's analysis report. Despite competition, Nvidia's strong market position remains. Earnings guidance for fiscal year 2026 will be crucial, with potential revenue of $42 billion.Nvidia's eagerly awaited fourth-quarter fiscal year 2025 earnings is due to be released today, February 26, 2025, after the market closes, as per reports. Here's what investors should look for. With the firm being a leader in graphics processing units (GPUs) and artificial intelligence (AI), investors are looking forward to its performance for the period between November 1, 2024, and January 31, 2025, marking the close of its fiscal year. According to a Nasdaq's analysis report, analysts expect Nvidia to break its own records in the quarter, with projected revenue of $38.32 billion, a 73% growth year-on-year. This is an improvement on the company's own guidance in the Q3 FY2025, as it had forecasted earnings of $37.5 billion. Projected net income is $21.08 billion, up from $12.84 billion for the same period last year, as per the report. With stakes this high, Nvidia's performance will be the key indicator of the AI bubble. Saxo's global head of investment strategy, Jacob Falkencrone said, "This earnings report isn't just about Nvidia, it's about whether the AI revolution can maintain its breakneck pace," as quoted by Reuters. As per Nasdaq's analysis, the Wall Street is abuzz with positivity. The report found that 17 out of 18 analysts gave "buy" or similar ratings with only one "neutral" rating. The average price target for Nvidia's stock is $175, approximately 26% above its current price of $134.43, reported Nasdaq. The huge demand for Nvidia's data center chips, especially with the imminent release of the Blackwell platform, is fueling these optimistic projections. The main reason for Nvidia's projected growth is the increasing demand for AI infrastructure. Large tech companies are increasing their spending on AI, with Meta set to spend as much as $65 billion on AI data centers in 2025, Alphabet projecting $75 billion, and Amazon having the potential to spend over $100 billion, as per reports. The spree of spending might be a boon to Nvidia, which has emerged as the supplier of choice for high-performance chips utilized for AI processing, according to Nasdaq's analysis. The rise of Chinese startup DeepSeek, which has claimed it created more powerful AI models with lower computing demands, has triggered worries that Nvidia's monopoly on the AI chip business might be threatened, as per reports. Already, the news has seen an 11% fall in the price of Nvidia stock from January peaks, reported Nasdaq. While there are some analysts concerned that DeepSeek's technology will erode Nvidia's market share, others think the effect will be marginal. According to a Reuters report, the surge in demand for Nvidia's H20 chip, particularly from Chinese firms, due to booming demand for low-cost AI models, indicates that Nvidia is still a major player. Aside from the Q4 profits, investors will also watch Nvidia's first-quarter fiscal year 2026 guidance. Analysts are projecting revenue to reach approximately $42 billion in 2026, reported Nasdaq. As per the report, even updates on the Blackwell platform's production ramp will be crucial, scheduled to begin in Q4 and continue into FY2026. Nvidia has established a strong track record of beating earnings estimates, having done so in 16 out of the past 18 quarters, as per Nasdaq's analysis. The report cited an instance: in Q3 FY2025, it recorded $35.1 billion in revenue, a 94% increase from the preceding year. Q2 FY2025 also recorded $30.0 billion in revenue, a 122% increase from the previous year. With such high expectations, Nvidia's stock may experience a dramatic move in either direction after earnings. If the company meets or beats the $38.32 billion revenue forecast, anticipate a stock price surge, possibly getting it near the consensus estimate of $175, according to Nasdaq's analysis. However, if the guidance for FY2026 falls short or if there are concerns about supply chain issues, analysts expect some volatility, as per Nasdaq. This could happen, given the recent dip in stock price triggered by the news surrounding Chinese AI developments, the report added. Why is Nvidia performing so well? The increased need for AI infrastructure is a major driver. Large technology companies such as Meta, Alphabet, and Amazon are substantially boosting their spending on AI, and Nvidia is a leading provider of the chips used in this. What are analysts forecasting? Analysts expect Nvidia to report record revenue of $38.32 billion and net income is expected to reach $21.08 billion.

Watch These Nvidia Stock Price Levels With Earnings Report Set for Release Wednesday

Nvidia (NVDA) shares will be on watchlists as the AI favorite gears up to release its highly anticipated earnings report after Wednesday's closing bell. The chipmaking giant, which has a track record of blowing past Wall Street expectations amid insatiable demand for its lineup of AI silicon, is projected to report a 73% jump in fourth-quarter revenue from a year earlier and post net income of $21.08 billion, up from $12.84 billion. Nvidia shares trade flat on the year, but have gained 12% this month as of Friday's close, with analysts remaining widely bullish on the chipmaker's stock as big tech hyperscalers continue to ramp up spending on AI infrastructure. The stock fell 4.1% to $134.43 on Friday amid a broader sell-off on Wall Street. Below, we take a closer look at Nvidia's chart and use technical analysis to identify crucial price levels worth watching out. Nvidia shares have consolidated in a descending channel since mid-December, with trading volumes declining over that period. More recently, a bearish engulfing pattern formed on the chart Friday, signaling a potential move lower ahead of the chipmaker's results. Interestingly, this same candlestick pattern has appeared on two other occasions since the stock set its record high in early January, both of which preceded further selling. Meanwhile, the relative strength index (RSI) has mimicked the price, putting in lower highs since the start of the descending channel, indicating waning buying momentum. Let's identify several crucial support and resistance levels on Nvidia's chart that investors may be watching. The first lower level to eye sits around $130. The shares could find support in this area near a trendline that links the prominent August peak with troughs that formed on the chart in December and January. Selling below this location may see the shares decline to the $113 level. Investors may look for buying opportunities in this region near this month's swing low, which closely aligns with a range of comparable trading levels on the chart stretching back to May last year. This area also lies just above a projected bars pattern target that takes the stock's move lower in late January and repositions it from the descending channel's top trendline. A more significant post-earnings drop in Nvidia shares could bring the $102 level into play, a location on the chart where the shares may encounter support near the opening price of the late May breakaway gap and a series of prices situated around the August and September lows. A breakout above the descending channel's upper trendline could initially see the shares make another attempt at the $153 level. This area on the chart would likely provide overhead resistance near the stock's all-time high (ATH). Finally, investors can forecast a bullish target above the ATH by using the measured move technique, also known as the measuring principle. To apply the analysis, we calculate the wide of the descending channel in points and add that amount to the pattern's top trendline. For example, we add $32 to $142, which forecasts a target of $174, a location nearly 30% above Friday's closing price where investors may decide to lock in profits. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Should You Buy Nvidia Stock Before Feb. 26? Wall Street Has a Clear Answer for Investors. | The Motley Fool

Chipmaker Nvidia (NVDA -3.09%) will report financial results for the fourth quarter of fiscal 2025 (which ended in January 2025) after the market closes on Wednesday, Feb. 26. Earnings events can introduce a great deal of volatility. Options prices currently imply an 8% move in the stock (up or down) following the quarterly report. Despite recent disruptions from Chinese start-up DeepSeek, Wall Street remains bullish on Nvidia. Among the 68 analysts who follow the company, the consensus rating is "buy," and the median target price is $175 per share, according to The Wall Street Journal. That implies 34% upside from its current share price of $131. Here's what investors should know. Nvidia's graphics processing units (GPUs) are the gold standard in accelerating complex data center workloads like training large language models and running artificial intelligence (AI) applications. Forrester Research analysts last year commented, "Nvidia sets the pace for AI infrastructure worldwide. Without Nvidia's GPUs, modern AI wouldn't be possible." Importantly, Nvidia supplements its GPUs with adjacent data center hardware, including central processing units (CPUs), interconnects, and networking equipment. In fact, the company has a leadership position in networking gear used for generative AI. That vertically integrated business model affords Nvidia an important advantage. The company can build entire AI systems for customers, and those systems generally offer the lowest total cost of ownership. Nvidia also has opportunities beyond the data center in autonomous driving and autonomous robots. That segment is currently a small fraction of total sales, but CEO Jensen Huang says autonomous-driving revenue will achieve a $5 billion run rate in fiscal 2026, which ends in January 2026. That is nearly triple the revenue run rate from the third quarter of fiscal 2025. Here is the bottom line: Nvidia is the foundation of the AI revolution, and that burgeoning market opportunity extends well beyond generative AI into autonomous robots and self-driving cars. Grand View Research says spending on AI hardware, software, and services will increase at 36% annually through 2030. Nvidia has a good shot at matching that growth rate. In fiscal 2025's Q4, Wall Street expects Nvidia's revenue to grow 72% to $38 billion, while non-GAAP earnings increase 75% to $0.91 per diluted share. Importantly, the stock will not necessarily rise after an earnings beat. Forward guidance is equally important. On one hand, several hyperscale cloud companies discussed compute-capacity constraints during their recent earnings calls and outlined plans to invest heavily in AI infrastructure in 2025 to resolve the issue. That list includes Alphabet, Amazon, Meta Platforms, and Microsoft. Greater spending from those companies is a tailwind for Nvidia that could lead to strong guidance. On the other hand, the U.S. government for several years has progressively tightened export restrictions on semiconductor companies. Those restrictions prevent Nvidia from selling its most powerful GPUs to China, among other countries, but also limit exports to about 120 countries. That headwind could lead to weak guidance. Importantly, Morgan Stanley analysts led by Joseph Moore recently reiterated Nvidia as their top pick in the semiconductor industry. But they also wrote, "We aren't seeing the quarter as a major positive catalyst, but we remain convinced once we get past export controls there will be positive momentum into [the second half]." Investors should never make decisions based solely on short-term catalysts. But the long-term investment thesis for Nvidia is solid, and Wall Street forecasts adjusted earnings will increase at 51% annually through fiscal 2026, which ends in January 2026. That consensus makes the current valuation of 50 times adjusted earnings look cheap. At that price, prospective investors should feel confident buying a small position in Nvidia today, provided they have a time horizon of at least three years. However, as I mentioned earlier, earnings events can cause share-price volatility. For that reason, investors planning to buy Nvidia stock should purchase a few shares before earnings and a few shares after earnings.

Nvidia Set For 'Clear Beat And Raise Special' As AI Demand Surges, Says Dan Ives - Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN)

Nvidia Corp. NVDA is poised to deliver another strong earnings performance this week, according to Wedbush Securities analyst Dan Ives, as artificial intelligence demand continues to drive growth for the semiconductor giant. What Happened: "We expect another robust performance and 'clear beat and raise special' this week from Nvidia that should calm the nerves of investors," Ives wrote on X on Sunday, citing massive demand drivers from the company's new Blackwell architecture and AI capital expenditure fueling what he called the "4th Industrial Revolution." The chipmaker's fiscal fourth-quarter results, due after market close on Wednesday, are expected to show revenue growth of 72% year-over-year, with sequential growth of at least 8%. This performance would mark Nvidia's consistent streak of beating consensus revenue estimates since before 2020. Evercore ISI recently added Nvidia to their Tactical Outperform list, emphasizing the company's five-to-ten-year technological lead over competitors. The firm noted Nvidia remains the top choice for major tech companies including Alphabet Inc., Amazon.com Inc., and Microsoft Corp. The company's robust financial position adds to investor confidence, with cash reserves up nearly 50% to $38.5 billion at the end of the third quarter, exceeding total liabilities. Despite an expected slowdown in growth rate, analysts project sustained high-double-digit growth through 2025. Nvidia's stock has already rebounded 20% from its late January low, with analyst consensus suggesting a potential 20% upside from mid-February levels. Tigress Financial recently reiterated this optimistic outlook, upgrading the stock to Strong Buy with a price target of $220. Price Action: Nvidia closed at $134.40 on Friday, down 4.08%. After hours, it rose 0.45%. Year to date, it's down 2.83%, with a 52-week range of $66.25 to $153.13, according to data from Benzinga Pro. Read Next: Warren Buffett Favors 5% Treasury Bills Over Buybacks As Berkshire Hathaway's Cash Pile Balloons To $334 Billion: 'The Rate Of Change... That's Most Telling,' Says Expert Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMZNAmazon.com Inc$216.60-2.82%OverviewGOOGLAlphabet Inc$179.50-2.74%MSFTMicrosoft Corp$407.97-1.96%NVDANVIDIA Corp$134.90-3.72%Market News and Data brought to you by Benzinga APIs

Nvidia Stock Price In 5 Years: NVDA To Beat Expectations Despite DeepSeek Challenges

Nvidia is expected to report strong fourth-quarter earnings and revenue, but DeepSeek competition may pose a threat. | Credit: Chip Somodevilla/Getty Images Nvidia will release its latest earnings on Wednesday, Feb. 26, after market close. Investors will be focusing on AI chip advancements and on the outlook. In fact, Nvidia's future is undermined by potential U.S. tariffs on chips and the Chinese competitor DeepSeek, which has already caused the worst single-day trading performance for Nvidia, Nvidia to Beat Estimates Despite DeepSeek Challenges Analysts project record revenue of $38.32 billion, a 73% annual increase, surpassing Nvidia's guidance of $37.5 billion. Net income is expected at $21.08 billion, up from $12.84 billion a year ago. Seventeen out of eighteen analysts rate Nvidia a 'buy,' with a consensus price target of $175 -- 26% above the stock's $134.43 price. Optimism stems from strong demand for Nvidia's data center chips, particularly the Blackwell platform, expected to generate billions in Q4 revenue. AI infrastructure demand remains a key growth driver, with Meta, Alphabet, and Amazon significantly increasing capital expenditures. However, concerns persist over future demand as China's DeepSeek develops AI models requiring less computing power, contributing to an 11% stock decline since early January. Analysts believe this is offset by growing inference workloads and spending. Investors will closely watch the company's guidance, with analysts forecasting nearly $42 billion in revenue. Updates on the Blackwell platform's production ramp will also be critical. Nvidia has beaten earnings estimates in 16 of the last 18 quarters. In the last quarter, revenue hit $35.1 billion - up by 94% year-over-year -and in the previous quarter, turnover was $30.0 billion, increasing by 122%. With high expectations, NVDA stock could surge if results meet or exceed forecasts, but any weak guidance or supply issues could trigger volatility. Three Catalysts to Monitor Nvidia's data center business alone is expected to generate $113 billion in annual revenue -- more than any other chip company's total revenue estimate. However, BofA analysts expect post-earnings volatility but see momentum resuming from three factors: Nvidia's new Rubin product line, expansion into robotics, and quantum tech. KeyBanc raised its price target to $190 from $180, citing higher-than-expected Blackwell chip supply. Mizuho Securities maintains an outperform rating and $175 price target, expecting Nvidia to capture 44% of the AI server market and potentially drive $260 billion in AI accelerator sales by 2027. Reports suggest former President Trump is considering 25% tariffs on chips. This could raise costs on imports, primarily from Taiwan Semiconductor (TSMC). Where Will NVDA Stock Be In Five Years? Nvidia is projected to grow annual earnings by 52% over the next five years. Based on its 2025 EPS estimate of $2.84, its earnings could jump to $23 per share. With a forward P/E of 45, even if the multiple drops to 29 -- aligning with the Nasdaq-100 -- it could still push Nvidia's stock price to $667 in five years. The AI chip market is expected to reach $311 billion by 2029, growing at a 20.4% CAGR. Applying that growth rate to Nvidia's estimated $90 billion in annual data center sales suggests over $225 billion in AI-related revenue by 2029. If margins hold steady , this alone could justify another doubling of NVDA stock price. This outlook assumes Nvidia maintains its AI dominance, though competition is increasing. AMD estimates the AI chip market will hit $400 billion by 2027, indicating even stronger potential industry growth. With these trends, Nvidia's market cap doubling to $6 trillion in five years seems reasonable. Some analysts are even more bullish -- Beth Kindig of the I/O Fund projects a $10 trillion valuation by 2030.

Nvidia has 'room to grow:' What to watch ahead of earnings

Wall Street is holding its breath as Nvidia (NVDA) gears up to report its fourth quarter results on Wednesday. Despite its sky-high valuation, Patrick Moorhead, Chief Analyst at Moor Insights, believes the AI giant still has "a lot of room to grow." He joined TheStreet to discuss what investors should watch ahead of Nvidia's highly anticipated earnings report. Related: How Nvidia's stock responds will be huge for the S&P 500 this week Full Video Transcript Below: CONWAY GITTENS: All right. Talk to me about Nvidia. Do you have to hold your breath until Nvidia's results February 26th? PATRICK MOORHEAD: I don't you know, it's one of these stocks that any breath or any rumor of something. I mean, I think seen seven Blackwell delay rumors that ended up to to not be accurate. And we've got DeepSeek that's coming in and and showing risk. There was a little bit of sell off based on Biden's last day. Some of the rules about exports in there. But I think with Nvidia it has a lot of legs. Particularly because the build out has to continue until we get to AGI. And then we have to enable all the endpoints, all the cars, all the robotics, all the PCs and everything out there that this Nvidia has a lot of room to grow. I know that sounds incredible given their valuation, but they're not in a lot of these markets. And even going from their H series to their B series, they're not just selling chips, they're selling full racks, they're selling networking and they're selling software. So the amount of content for each of these solutions is going up. And people aren't just replacing a chip. And at least so far, competition from AMD and Intel and others hasn't been able to take a bite out of Nvidia. And as long as Nvidia stays ahead, which I see no reason why they're not going to, they might lose market share on a percentage basis, but the dollar value is just going to keep going up. Watch More Videos:

Should You Buy Nvidia Stock Hand Over Fist Before Feb. 26?

The DeepSeek dip is nearly over for Nvidia (NVDA -4.05%). I'm referring, of course, to the thrashing Nvidia's share price took last month when many investors panicked about the threat presented by Chinese artificial intelligence (AI) company DeepSeek. Although Nvidia's stock sank as much as 21% below its previous high, most of that loss has evaporated. But while it's too late to buy Nvidia on the DeepSeek-induced dip, another potential catalyst beckons. The GPU maker is scheduled to announce its fiscal 2025 fourth-quarter and full-year results later this week. Should you buy Nvidia stock hand over fist before Feb. 26? The underlying premise of the question People concerned about whether to buy Nvidia stock in the next three trading days might be focusing on whether there's a good possibility that Nvidia's share price will jump after its Q4 update after the market closes on Feb. 26. History does signal that a post-earnings jump could be coming. Especially following OpenAI's launch of ChatGPT in November 2022, Nvidia has a great track record of exceeding Wall Street's earnings expectations. And its share price has often performed well afterward. NVDA data by YCharts The "E's" on the above chart show when Nvidia reported its quarterly earnings. After six of those nine updates, the stock rose afterward. However, astute readers will notice that Nvidia's shares didn't rise immediately after its two most recent quarterly updates. Will Nvidia stock jump after its Q4 update? The short answer to this question is that there's no way to know for sure. However, we can make an educated guess. First, it's important to understand what it will take for Nvidia to beat Wall Street's expectations. The average Q4 revenue estimate of analysts surveyed by LSEG is $38.13 billion. The average earnings per share (EPS) estimate is $0.85. To hit these numbers, Nvidia must deliver year-over-year revenue growth of roughly 72.5% and EPS growth of 63.5%. Nvidia could top analysts' estimates even with slowing growth. The company reported year-over-year revenue growth of 94% in the third quarter of fiscal 2025 and EPS growth of 103%. However, management's Q4 guidance projects revenue of $37.5 billion, plus or minus 2%. Nvidia will have to be near the upper end of the range to perform better than Wall Street expects. For the stock to jump enough to justify buying it hand over fist before the Q4 update, though, Nvidia can't merely scrape by with a revenue and earnings beat. It will either need to handily exceed estimates and/or provide an especially encouraging outlook for fiscal 2026. Can the company do this? I think the chances are pretty good for three main reasons. First, Nvidia CFO Colette Kress said in the company's Q3 earnings call, "Blackwell demand is staggering." She added that Nvidia was on track to top its previous revenue estimate for the new GPU chips even though it couldn't keep up with demand. Second, several of Nvidia's biggest customers revealed in recent weeks that they're continuing to invest heavily in AI infrastructure. Amazon, Microsoft, Google parent Alphabet, and Meta Platforms were all singing from the same page in their latest quarterly updates. That bodes well for Nvidia. Third, those huge customers aren't flocking to Advanced Micro Devices, Nvidia's primary rival. AMD reported strong Q4 revenue growth earlier this month but lower than expected. The longer-term question I won't be surprised at all if Nvidia beats Wall Street's Q4 estimates and provides a strong outlook, with its shares popping when the market opens on Feb. 27. But investing is not about the short term or trying to jump in and out of stocks ahead of a certain move. The long-term question is: Can Nvidia's momentum continue much longer? Some believe the answer to that question is "no." They point to Nvidia's valuation (shares trade at 32.6 times forward earnings). They predict the demand for AI chips will wane, perhaps in part due to more efficient models such as DeepSeek's that require fewer GPUs. I'm more optimistic, albeit cautiously so. My hunch is that advances in AI will spur greater demand for Nvidia's chips rather than lead to lower demand. I also fully expect Nvidia will continue to out-innovate the competition. Sure, Nvidia's momentum will eventually slow. It's inevitable. However, buying the stock before Feb. 26 is probably a smart move, in my view. Even if you don't invest in Nvidia by then, the stock could still have plenty of room to run afterward.

Nvidia Stock's Next Big Catalyst Could Come on Feb. 26. Should You Buy Shares Before or After the Earnings Release? | The Motley Fool

Artificial intelligence (AI) technology giant Nvidia (NVDA 0.63%) is slated to report its results for the fourth quarter of fiscal 2025 (ended Jan. 26) on Wednesday, Feb. 26, after the market close. Nvidia's upcoming earnings release is probably the most anticipated of this quarterly earnings season. That's because the company is not only widely viewed as a bellwether, or indicator, for the red-hot AI space, but also of the tech sector in general and, to some degree, even the entire market. Moreover, investors will be looking forward to what management has to say about Chinese start-up DeepSeek. On Jan. 27, shares of Nvidia dropped 17% due to concerns about a potential slowdown of spending on its graphics processing unit (GPU) chips and related tech. The sell-off was sparked by DeepSeek's announcement that it trained an open-source AI model for significantly less money than ChatGPT owner OpenAI and others have spent to train their models. Many market watchers have expressed doubts about the veracity of some of DeepSeek's statements, but some investors are probably still uneasy about the topic even though Nvidia stock has largely recovered. Shares were trading at $142.62 before the DeepSeek sell-off and closed at $139.23 on Feb. 19. Data sources: Nvidia and Yahoo! Finance. Fiscal Q4 2025 ended Jan. 26. *Calculation by the author based on the metrics for which management provided guidance. I reviewed Nvidia's results for the last 18 quarters, or four and a half years. This data goes back to the quarter ended in late July 2020. I also separated out the results of the last four quarters. Data source: Nvidia. Calculations by author. *Earnings in the form of adjusted earnings per share (EPS). **Rounded to nearest whole number. Nvidia has a great track record of exceeding Wall Street's earnings estimates, so the probability seems high that it will do so again. Its average earnings beat, percentage-wise, has been a little smaller over the past four quarters than over the past 18 quarters. Investors should focus on Nvidia's results and guidance, and not be overly concerned with how the stock moves after its earnings release. For long-term investors, caring too much about daily price movements is a waste of time and energy. (Eye-opening tidbit: Saving just 10 minutes of wasted time a day adds up to about 61 hours a year.) If Nvidia continues to churn out strong results for years ahead -- and it seems poised to do so -- the stock price should naturally rise. That said, I know many folks still want to see this data, so here it is: Data sources: Nvidia's earnings reports, Yahoo! Finance, and YCharts. *Rounded to nearest whole number. The data above is for the four quarters of fiscal 2024 and the three quarters reported so far for fiscal 2025. This is the period for which generative AI -- the tech behind OpenAI's ChatGPT chatbot and other newer chatbots -- has boosted the company's results. Notice there is not even a modest correlation between the size of the earnings beat and the stock's price movement the next day. There are primarily three reasons for this dynamic: If you're a long-term investor, it should make little difference over the long term if you buy Nvidia stock before or after it reports its quarterly results. (Granted, Nvidia stock jumped 24.4% in May 2023 after the fiscal Q1 2024 results were released. But this magnitude of a post-earnings-release move is rare. This particular move was due to generative AI recently bursting onto the scene, resulting in Nvidia not only crushing earnings expectation, but also issuing much higher guidance than Wall Street had anticipated. And long-term investors aren't concerned with a move in such a short time frame.) But if you're the type of person who will kick yourself for making what you view as the "wrong" timing decision and missing out on, for example, a 10% daily gain or incurring a 10% daily loss, I have a suggestion for you: Consider buying about half your shares before the earnings release and half after the release.

NVIDIA Is The Cheapest AI Stock In Our List Ahead Of Earnings, Says Investment Advisory Firm

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. Chip designer NVIDIA Corporation is investment advisory Evercore ISI's cheapest AI stock; the firm shared in a fresh note released earlier today. Evercore kept an Overweight rating and a $190 share price target for NVIDIA and outlined that if the firm reports a small beat along with positive sentiment for its latest Blackwell GPUs, then the stock might experience tailwinds. NVIDIA's shares currently trade for $130 and have been laggards for quite some time as investors remain on the sidelines and evaluate the demand for its products and Blackwell availability. NVIDIA's earnings call for its fiscal fourth quarter is due on Wednesday, with analysts expecting the firm to post $38 billion in revenue and around $0.84 in earnings per share. Year-to-date, NVIDIA's shares have lost 5.81%, while the stock has been flat since mid-August. However, Evercore still rates NVIDIA as Outperform as it opines that the shares could benefit from a small Q4 beat and a Q1 raise coupled with optimism surrounding Blackwell's availability. Investors have been jittery about NVIDIA's shares ahead of the firm's earnings report. The stock lost 3% on Monday amidst a flurry of negativity which included reports of Microsoft scaling back its data center presence and China's DeepSeek sustaining its AI advances. NVIDIA's shares lost close to $600 billion in market capitalization in January after investors dumped the stock amidst worries of DeepSeek eliminating the need to spend billions of dollars to buy advanced AI GPUs. In its note, Evercore ISI keeps a $190 share price target on NVIDIA as well as an Overweight rating. The firm notes that ahead of NVIDIA's earnings investors are worried about DeepSeek lowering the demand for AI GPUs, DeepSeek shifting the demand for AI computing to application specific integrated circuits (ASICs) or custom chips and delays with NVIDIA's Blackwell GPUs. A purported drop in AI computing power requirements demonstrated by DeepSeek has implied to investors that custom AI chips might allow businesses to reduce their AI development costs. Evercore adds that the market is also worried about 'digestion' in the data center industry where firms decide to fully utilize their existing capacity and orders before deciding to procure additional GPUs. However, the investment advisory firm notes that as NVIDIA's shares are trading at 30 times their forward earnings, the stock is the cheapest in its AI coverage universe. As a result, it concludes that any earnings beat and raise in the upcoming earnings could generate tailwinds for NVIDIA's shares.

1 Wall Street Analyst Thinks Nvidia Stock Is Going to $190. Is It a Buy? | The Motley Fool

After a torrid 548% run over the past two years, Nvidia (NVDA 0.15%) shares have largely been flat since November. That's understandable as investors digest its growth prospects in a rapidly changing artificial intelligence (AI) industry. However, one Wall Street analyst thinks shares are ready to pop again. KeyBanc's John Vinh rates the stock as overweight and just raised his price target from $180 to $190 per share. The new target implies more than 40% upside for Nvidia's shares. One reason the stock has been range-bound recently is the fear that massive spending on artificial intelligence (AI) infrastructure is now in limbo. That uncertainty stems from DeepSeek, a Chinese AI start-up that released a powerful new large language model (LLM) that it claims to have trained for just $6 million. This low-budget success story has called into question the plans of U.S. tech companies to spend over $300 billion on AI investments in 2025. According to Vinh, this uncertainty around the industry and Nvidia has created a buying opportunity. He believes the company will beat expectations when it reports fiscal 2025 fourth-quarter results on Feb. 26. Vinh also thinks the company will soothe any investor concerns with solid guidance for the current quarter. Nvidia previously provided Q4 revenue guidance of $37.5 billion (at the midpoint). Vinh expects the company to hit the high end of the range with $38.2 billion in sales, according to Barron's. More importantly, he believes revenue will jump again to $43.0 billion in its fiscal 2026 first quarter. If Nvidia continues to grow revenue quarter after quarter, it's likely that Vinh's prediction will ultimately play out. Shareholders are certainly counting on the company's top and bottom lines to keep growing as the stock trades at a forward price-to-earnings (P/E) ratio of 30 as of this writing. If management can reassure investors with the upcoming report, its valuation multiple might even expand. And combined with continued earnings growth, Nvidia may be able to deliver the gains Vinh predicts.

NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2025

NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 26, 2025, of $39.3 billion, up 12% from the previous quarter and up 78% from a year ago. For the quarter, GAAP earnings per diluted share was $0.89, up 14% from the previous quarter and up 82% from a year ago. Non-GAAP earnings per diluted share was $0.89, up 10% from the previous quarter and up 71% from a year ago. For fiscal 2025, revenue was $130.5 billion, up 114% from a year ago. GAAP earnings per diluted share was $2.94, up 147% from a year ago. Non-GAAP earnings per diluted share was $2.99, up 130% from a year ago. "Demand for Blackwell is amazing as reasoning AI adds another scaling law -- increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter," said Jensen Huang, founder and CEO of NVIDIA. "We've successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries." NVIDIA will pay its next quarterly cash dividend of $0.01 per share on April 2, 2025, to all shareholders of record on March 12, 2025. NVIDIA achieved progress since its previous earnings announcement in these areas: CFO Commentary Commentary on the quarter by Colette Kress, NVIDIA's executive vice president and chief financial officer, is available at https://investor.nvidia.com. Conference Call and Webcast Information NVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter and fiscal 2025 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA's investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA's conference call to discuss its financial results for its first quarter of fiscal 2026. Non-GAAP Measures To supplement NVIDIA's condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA's investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other, gains from non-marketable and publicly-held equity securities, net, interest expense related to amortization of debt discount, and the associated tax impact of these items where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies.

Block your dates: Here's why February 26 could be the most critical day for Nvidia and its stock

Nvidia will release its fourth-quarter and fiscal 2025 results on February 26. The outcome may define the company's future and stock price. Nvidia has dominated the AI market and the results will show how the launch of its new AI architecture, Blackwell has performed. Investors are keen to see if Blackwell meets high expectations, signalling continued long-term growth, as per The Motley Fool.Investors are getting ready for potentially one of the most important days for Nvidia. On February 26, the firm will publish its fourth-quarter and fiscal 2025 results, which might define the future of Nvidia and the stock price, as per a report. Here's why you should mark that date on your calendar. Nvidia has dominated the world of artificial intelligence (AI) for years. This top creator of graphics processing units (GPUs), the essential hardware that drives AI model training and inferencing, has gained double and triple-digit revenue growth in recent years, reported The Motley Fool. That propelled Nvidia to new record highs, even warranting a place in the Dow Jones Industrial Average in 2024, where its shares outperformed compared to all of the stocks in the benchmark 2024, as per the report. According to The Motley Fool, Nvidia has constructed a huge AI ecosystem, with all sorts of products, services, and platforms bespoke to industries such as healthcare and autonomous driving. The company's expansion plan into "AI agents", enabled by its enterprise software, reflects Nvidia's aspiration to fuel growth as AI addresses real-world issues, as per the report. The focus of Nvidia's upcoming quarterly report includes a milestone, the launch of Blackwell, Nvidia's most powerful AI architecture yet, reported The Motley Fool. This new product is poised to be a game-changer, and Nvidia has already indicated "staggering" demand, with hopes that Blackwell will ring up billions of dollars in revenue in its first quarter on sale. Though Blackwell's release was thrilling, it was a tricky product to release. According to The Motley Fool, Blackwell is expensive for Nvidia due to its customizability, yet Nvidia anticipates the gross margin to surpass 70%, reported The Motley Fool. Investors will be watching closely to see if Nvidia's Blackwell launch goes as planned. If it exceeds expectations, it would be a strong signal that Nvidia can keep delivering on its innovation promises, setting the stage for continued long-term growth, as per the report. Although February 26 is a big day, it's not necessarily a do-or-die situation for Nvidia, as per The Motley Fool. The firm's long-term growth narrative is still intact, no matter what short-term hiccups may occur. Even if the Blackwell launch is a bit rocky, it won't stop Nvidia from continuing to lead the pack in AI, according to the report. When will Nvidia report its earnings? Nvidia will report its earnings on February 26. Nvidia will report its fourth-quarter and fiscal 2025 earnings. What is Blackwell? Nvidia Blackwell is the company's next-gen GPU architecture, built to power advanced AI tasks.

Here's How Generative AI Factors Into Nvidia's Plan for Growth | The Motley Fool

A handful of companies seem to be at the center of the artificial intelligence (AI) universe, and Nvidia (NVDA 3.67%) is certainly one of them. The company's unique ability to design some of the most advanced processors for AI has vaulted its status, not to mention its share price, over the past several years. Nvidia's management has talked extensively about generative AI on recent earnings calls, according to research from The Motley Fool. But what, exactly, are Nvidia's long-term prospects from generative AI? Here are three of the biggest opportunities. You've probably noticed a lot of technology companies talk about AI spending lately. The figures are often in the billions of dollars, but what is most of that money being spent on? In many cases, data center infrastructure. The world's largest tech companies are in an AI race and almost all of them have pulled out their checkbooks to try to win it. Nvidia benefits no matter where the money is coming from because it designs processors that work perfectly for training advanced AI models. To continue developing new AI models and processing all of the requests being made by current ones, companies need to upgrade their data centers to accelerate their computing power. That means, according to Nvidia's earnings calls, that tech giants are transitioning from general-purpose data centers to AI ones. The opportunity here is massive. Nvidia CEO Jenson Huang thinks AI data center spending will reach $2 trillion in the next five years alone. The spending is already paying off for the company, with Nvidia's data center revenue more than doubling to $30.8 billion in the fiscal third quarter (which ended Oct. 27). This opportunity goes hand in hand with data center spending, but I want to break it out into its own category because I think it's important to distinguish between AI data center spending and AI cloud services. Some data center spending will go to building and training new AI models. But some of it will go to building out new AI cloud services, like conversational AI, enterprise AI services, artificial intelligence agents, and video and image generation. Global cloud revenue could reach $2 trillion by 2035 because of AI, according to Goldman Sachs, and as more of these AI cloud services come online, they'll likely be powered by Nvidia's processors. Nvidia develops its own technology for autonomous vehicles and has partnered with many automakers to bring its hardware and software components to the road. Most recently, Uber Technologies and Nvidia announced a new partnership that will utilize Nvida's generative AI tech to "supercharge the timeline for safe and scalable autonomous driving solutions for the industry," Uber CEO Dara Khosrowshahi said. This is in addition to Nvidia's other partnerships, which include Toyota Motor, Volvo, BYD, and others. The market potential for autonomous vehicles is significant, with Move Strategy Consulting estimating it could be worth $2.3 trillion by 2030. And Nvidia is already benefiting. The company's automotive segment generated $449 million in the first quarter of fiscal year 2025 (which ended Oct. 31, 2024), an increase of 72% year over year. The current autos segment growth gives Nvidia an estimated $5 billion annual run rate for its automotive segment sales this year. And Huang is very optimistic that there's plenty more opportunity. Speaking about autonomous vehicles at the recent CES conference, Huang said, "I predict that this will likely be the first multitrillion-dollar robotics industry." Nvidia's stock has a forward price-to-earnings multiple of 32.5, compared to the S&P 500's forward P/E of 24.5. That means you're not getting Nvidia at a discount if you buy its shares right now, but it's still relatively well priced amid a sea of AI stocks with much less potential.