Nvidia Corporation is poised to release its fiscal fourth-quarter earnings on Wednesday, February 26, after the market closes. This announcement comes at a pivotal moment, especially following recent market disruptions.
Anticipated Earnings Highlights
Analysts project that Nvidia will report a 72% increase in revenue, reaching $38.2 billion, up from $22.1 billion in the same quarter last year. Earnings per share (EPS) are expected to rise by 63%, from $0.52 to $0.85. While these figures indicate robust growth, they also reflect a deceleration compared to previous quarters.
For the full fiscal year 2025, forecasts suggest a 52% surge in sales to $195.9 billion and a 50% increase in EPS to $4.43. This slowdown in growth rates, from triple-digit percentages to high double digits, may raise concerns among investors about potential future challenges.
Market Dynamics and Competitive Landscape
Nvidia’s prominence in the AI chip sector has been a significant driver of its recent success. However, the emergence of competitors, notably Advanced Micro Devices (AMD), which plans to introduce its next generation of semiconductors later this year, intensifies the competitive environment. Additionally, Intel Corporation is striving to expand its presence in the AI chip market.
A recent development that rattled the market was the announcement by Chinese startup DeepSeek. The company unveiled an open-source reasoning model, R1, capable of impressive performance using fewer and less powerful chips than Nvidia’s offerings. This revelation led to a historic $600 billion drop in Nvidia’s market capitalisation in a single day. In response, CEO Jensen Huang is expected to address these concerns during the upcoming earnings call, emphasising Nvidia’s strong data center business and the performance of its latest chip series, Blackwell.
Investor Considerations
The forthcoming earnings report is crucial not only for Nvidia but also for the broader technology sector. A strong performance and optimistic guidance could bolster investor confidence, while any signs of vulnerability might prompt a reevaluation of Nvidia’s market position. Given the stock’s recent volatility, stakeholders are advised to monitor the earnings announcement closely and consider the evolving competitive landscape when making investment decisions.
In summary, while Nvidia remains a dominant force in the AI chip industry, the combination of slowing growth rates and increasing competition presents challenges that investors should carefully assess in the coming months.
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