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Nvidia’s Q4 was Good, but Investors aren’t Impressed- Here’s Why

During the earnings call, Nvidia unveiled several new products, including the next-gen Blackwell architecture

Nvidia Q4 results
NVIDIA Photo: Nvidia Q4 results
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Nvidia Q4 Results: The results of Wall Street's most beloved stock are finally here but investors seem to have a mixed reaction. The California-based chipmaker's revenue figure stood at $39.3 billion, up by around 12% from the previous quarter. Overall revenue for FY25 stood at $130.5 billion, a whopping increase of more than 100% from $60.9 billion reported in FY24.

Nvidia shares remained volatile after gaining around 3% on Nasdaq during the after-hours trading session, indicating that investors had expected more. While the overall results were healthy and above expectations, the numbers fell short of the blowout performances investors had grown accustomed to, as evident during the past quarters.

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Meanwhile, earnings per share stood at $0.89 for the quarter.

While Nvidia's bottom line remained strong, the company at the center of the AI revolution could face potential headwinds in the quarters ahead. Trade tensions owing to Trump's tariff call coupled with rising competition from players like DeepSeek might pose concerns for Nvidia.

Outlook Ahead

During the earnings call, Nvidia introduced several new products, including the next-gen Blackwell architecture. As per the company, the new AI product is designed to make AI models run faster and more efficiently.

"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," Nvidia founder Jensen Huang said during the earnings call.

The company recorded $11 billion in revenue from Blackwell during the quarter. "We've successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter," Jensen said.

However, analysts expect that the same could add pressure on gross margins, especially with the risk of US tariffs still looming. This was partly the reason why Nvidia shares remained choppy during after-hours trading. But, again, that's something every single company, be it of any sector, might face ahead. At the same time, it is worth mentioning that tech companies such as Meta and Microsoft are maintaining their AI capex, which might work-well for Nvidia.

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