Nvidia Delivered Strong Q4 Earnings, But the Stock is Down
Key takeaways
- Nvidia reported record quarterly revenue of $39.3B in Q4 FY25
- Its data center business continues to be the main engine of growth, with revenue up 93% from a year ago
- Despite beating analyst expectations, the stock is down the following day
Strong demand for Blackwell
Nvidia’s latest AI chip, Blackwell, has already raked in billions in sales in its first quarter. Its biggest customers include cloud hyperscalers like Microsoft, Google, and Amazon.
"We delivered $11 billion of Blackwell architecture revenue in the fourth quarter of fiscal 2025, the fastest product ramp in our company’s history" - Colette Kress, CFO
Nvidia CEO Jensen Huang has claimed that next-generation AI will need 100 times more compute power than older models due to new reasoning approaches.
Investors aren’t feeling it
Despite the earnings beat, Nvidia shares are down almost 9% over the past five days as part of the recent tech sell-off.
Investors may be concerned about Nvidia’s outlook for Q1 FY26—GAAP gross margins are expected to be 70.6%, which is down from the 73.0% reported in Q4 FY25.
Trump’s tariff threats are also likely playing a role, given Nvidia’s reliance on TSMC for manufacturing.