Nvidia’s Q4 earnings was reported on Wednesday, way above the Wall Street expectations on the top and bottom lines. Nvidia also released solid Q1 guidance. Nvidia’s release of Q4 earnings impacted the market and the stock was high by almost 2%. The earnings report of Nvidia along with its strong Q1 guidance signals that the chipmaker is confident on its continued growth with AI well into 2025.
Nvidia’s earnings report
Let us look at how Nvidia did compared with estimates from analysts, polled by LSEG:
Nvidia’s revenue: It was $39.33B, which was above expectation of $38.05B
Nvidia’s earnings per share: It was $0.89 adjusted above the expectation of $0.84.
The expected Q1 by Nvidia was about $43B versus $41.78B expected per LSEG estimates. Chief Financial Officer Colette Kress said the company expects “a significant ramp” of sales of Blackwell, its next-generation AI chip, in Q1.
Nvidia’s net income rose during the quarter by 89 cents per diluted share, versus 49 cents per share, in the year-ago period.
There was a stupendous rise in gross margin at 73% in the quarter, which was down three points on an annual basis. The company said the decline in gross margin was due to newer data center products that were more complicated and expensive.
Tariffs on imported chips in US
Nvidia’s earnings come as the company girds itself for potential 25% tariffs on chips imported into the US and the threat of increased export controls on its shipments to China. The AI giant is also contending with the fallout from claims that Chinese startup DeepSeek developed its AI models using less powerful Nvidia chips than its US rivals, putting into question whether Big Tech companies are over-investing in AI.
Nvidia’s revenue
Nvidia’s revenue had a dream rune as the company rides the AI boom with its data center graphics processing units, which comprise the vast majority of the market for AI accelerators. In the quarter, Nvidia’s revenue rose 78%, and full fiscal-year revenue for Nvidia rose 114% to $130.5B.
Nvidia’s revenue through Blackwell
Nvidia’s focus for this year is shipping of its next-generation AI processors, called Blackwell. As per Nvidia, it had earned revenue upto $11B during Q4.
Jensen Huang, Nvidia’s CEO said the demand for Blackwell is “amazing”. According to Nvidia CFO Colette Kress Blackwell is “the fastest product ramp in our company’s history.”
“Blackwell sales were led by large cloud service providers which represented approximately 50% of our Data Center revenue,” Kress said in a statement.
As per CEO, “We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter”. “AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries.”
Nvidia’s supremacy in AI chip
Nvidia continues to be the top company for AI chips, with all the big tech companies like Amazon, Google, Meta, and Microsoft are spending billions of dollars to build AI data centers, and a lot of those goes to Nvidia.
Stock update
Nvidia’s stock gained nearly 4% during today’s regular trading session. Nvidia’s shares fell by 1.5% to a price of $129.32 in extended trading, after seesawing between gains and losses. All the major tech companies have been struggling in the early months of 2025. Google parent Alphabet is off more than 8% year to date, Microsoft saw a drop of 5.3%, Amazon down 2.5%, and Apple has fallen more than 4%. However, shares of Meta have risen by over 14%.
