Unfiltered Insights
Nvidia's Financial performance in Q4: Leading AI Corporation Surpasses Projected Revenues by $39 Billion
Nvidia, the AI titan, reported its initial financial figures for the year, sending waves throughout the tech world. The earnings report, delivered on a Wednesday, offered an early glimpse into how Nvidia might navigate the market post-DeepSeek, the Chinese AI model that jolted the market with the largest single-day stock market value loss in history for the company.
Crucial Data Points
In the fourth fiscal quarter of 2025, which concluded not long ago, Nvidia registered staggering revenue of $39.3 billion. This performance yielded an adjusted earnings per share of $0.89 and a net income of $22.1 billion, marking 78% and 71% year-over-year revenue and profit growth, respectively. Analysts had predicted $38.1 billion in revenue and $0.85 in adjusted earnings per share.
Nvidia's datacenter division, handling the GPUs powering majority AI models, surged ahead, generating $35.6 billion in sales – exceeding the estimated $33.5 billion. Nvidia projected revenue for the upcoming spring quarter, targeting between $42.7 to $43 billion. Despite conducting a clear sweep over expectations, Nvidia's stock dipped slightly post-release, with the slight drop in gross profit margins presenting potential cause for concern. Chief Financial Officer Colette Kress pinned this decline on a shift to more complex and expensive systems in the datacenter division.
DeepSeek Context
This was the weakest growth experienced by Nvidia since the final quarter of 2023, yet the figures still outmatched Apple's 4% revenue and 10% profit expansion, the only organization boasting a market capitalization surpassing Nvidia. Nvidia brought in a net profit of $72.9 billion for the entire 2025 fiscal year, signifying an extensive 145% year-over-year increase and a striking 875% below-the-line jump from the previous fiscal year in 2023.
Stock Trends Unfazed
Shares of Nvidia accelerated over 3% during regular trading on the wedding day of the earnings report, closing at $131.28. However, Nvidia, with a $3.2-trillion market capitalization, experienced its cheapest intraday stock price since February 3, 2023, following a challenging start to the week. The ensuing 3% decline on monday and tuesday led to technical concerns related to President Trump's economic agenda, causing the Nasdaq to slide 1% each day, eventually hitting its lowest point since late November. Nvidia stock entered earnings on a vague downward trend, having tackled a 10% drop since reaching its peak ahead of its salient quarterly earnings report in November.
Analyst Viewpoint
Investor sentiment had become heavily negative in the days leading up to the earnings call. Despite this, analysts remained optimistic about Nvidia stock. The $175 average price target from 68 analyzed analysts represented a potential 38% upside from its Tuesday closing price. Bank of America analysts, among the most outspoken Nvidia bulls, predicted that the earnings report "could mark the trough in investor sentiment."
Nvidia's Evolution
Nvidia drew widespread attention as the leading architect of AI technology and design. The California-based company captured roughly 95% of the $158 billion global GPU market in 2025[1][3]. In 2023 and 2024, Nvidia emerged as the best-performing stock among listed companies on the S&P, a remarkable achievement. Despite recent underperformance, compared to the broader market, executives remain optimistic about the future of AI and Nvidia's role within it.
Sources:1. Marketwatch2. CNBC3. Bloomberg4. Business Insider5. Enquire
In anticipation of 2024, analysts are keeping a close eye on Nvidia's business strategies, given the company's weakest quarterly growth since 2023 in earnings. Despite the potential concerns raised by the slight dip in gross profit margins, analysts maintain a positive outlook, with an average price target of $175, indicating a 38% upside from the current market price.
Looking further into the future, Nvidia's 2025 earnings report revealed a net income of $22.1 billion and a staggering 78% year-over-year revenue growth. These impressive figures, however, represent the weakest growth the company has experienced since 2023, suggesting that even the AI titan may not be immune to market challenges.
As Nvidia looks towards 2024 and beyond, investors are hoping that the company can recover from its weakest growth period and regain its position as a market leader in AI technology.
