NVIDIA's Q4 earnings are expected to shatter previous records, with a projected revenue of $7.3 billion, a 25% increase from the same quarter last year.
This significant growth is largely driven by the company's strong performance in the gaming market, where revenue is expected to reach $2.5 billion.
The gaming industry is a key driver of NVIDIA's success, and the company's popular GeForce graphics cards and high-end gaming laptops have been flying off the shelves.
Gaming revenue is expected to make up a significant portion of NVIDIA's Q4 earnings, with a projected 30% increase from last year's numbers.
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Nvidia Earnings Preview
Nvidia is set to report its Q4 earnings on Wednesday after the market closes, with the stock price hovering around $140 per share.
The company is expected to report EPS of $0.85 on $38.13 billion in revenue, significantly higher than last quarter's estimates.
Nvidia has a perfect three-for-three track record of exceeding EPS and revenue estimates in its previous earnings announcements.
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Jensen Huang, the founder and CEO of Nvidia, has expressed strong optimism about the company's prospects, citing the growing demand for AI and the company's position as a leader in the field.
Nvidia's implied volatility is on the higher end of the typical 5-10% range for earnings announcements, indicating a potential for significant stock price movement.
The expected stock price range for earnings week is +/- $11.90, which is about 8% of the stock's notional value.
Here's a breakdown of the expected stock price movement for Nvidia's Q4 earnings:
Nvidia's Q4 earnings are expected to be a blowout, with revenue reaching an impressive $39.3 billion and EPS coming in at $0.89.
The company's Datacenter business is expected to have driven the revenue growth, with strong demand for its AI-focused chips.
Nvidia's dominance in the AI chip market is undeniable, with many of the world's largest cloud service providers turning to the company for AI acceleration.
The company's forward guidance of $43 billion in revenue for the first quarter of fiscal 2026 is well above analysts' expectations.
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The Datacenter end-market business is expected to have benefited from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
Nvidia's fourth-quarter performance is likely to have benefited from the recovery across its Gaming and Professional Visualization end markets.
The Gaming end market's last six quarters' results improved year over year as inventory with channel partners reached normal levels.
Nvidia's Professional Visualization segment performance also reflected recovery, with revenues increasing in the five consecutive quarters.
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Nvidia Stock Analysis
Nvidia's stock price has skyrocketed 78.1% over the past year, outperforming the Zacks Semiconductor – General industry’s growth of 62.9%.
The company's forward 12-month P/S is 17.75X, compared to the industry's 14.97X, reflecting a stretched valuation.
Nvidia reported record fourth-quarter revenue of $39.3 billion, up 12% from the previous quarter and 78% from a year ago.
The company's earnings topped expectations, with diluted earnings per share of $0.89, beating analyst estimates of $0.84.
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Revenue from Nvidia's data center unit reached $35.6 billion, climbing 16% from the previous quarter and nearly doubling from a year ago.
Nvidia expects revenue of $43 billion in the first quarter of fiscal 2026, in line with Wall Street expectations but lower than some of the more optimistic forecasts.
The company's gross margin is projected at 70.6% on a GAAP basis and 71.0% on a non-GAAP basis, showing strong profitability.
Nvidia's dominance in AI hardware has maintained, but some analysts have flagged concerns over supply constraints and rising competition.
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Nvidia Posts Record Revenue
Nvidia reported record fourth-quarter revenue of $39.3 billion, up 12% from the previous quarter and 78% from a year ago.
This significant increase in revenue is largely driven by the growing demand for artificial intelligence chips, which is a key area where Nvidia excels.
The company's earnings topped expectations, with diluted earnings per share of $0.89, beating analyst estimates of $0.84.
Revenue from Nvidia's data center unit, its largest business segment, reached $35.6 billion, climbing 16% from the previous quarter and nearly doubling from a year ago.
Nvidia's CEO, Jensen Huang, stated that the company is scaling AI computing at an unprecedented pace, with demand for its Blackwell AI chips being extraordinary.
For the full fiscal year, revenue more than doubled to $130.5 billion, while net income surged 145% to $72.9 billion, reflecting the strength of Nvidia's position in the AI market.
In A Nutshell
NVIDIA's dominance in the semiconductor industry has been a key factor in its success. The company's strong product portfolio is a major reason for this dominance.
As a leading player in GPUs, NVIDIA has been able to expand into new areas such as AI, data centers, and autonomous vehicles. This strategic expansion has helped the company to achieve substantial growth.
The premium valuation of NVDA stock might be a concern for some investors, but it's justified due to the company's consistent financial performance.
Frequently Asked Questions
What is Nvidia prediction for Q4?
Nvidia is expected to reach $38.1 billion in total revenues for Q4 2025, driven by growth in their Data Center segment. This prediction marks a steady increase since the beginning of last year.
What was NVDA quarter 4 earnings?
NVDA reported $39.3 billion in revenue and $0.89 per share in adjusted earnings for quarter 4, exceeding top and bottom line estimates. This marks a strong finish to the year for the chip manufacturing giant.
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