Nvidia’s Q4 Revenue Beats Estimates, But Margins Narrow Amid Product Rollout
- Strong Revenue Performance: Nvidia’s fourth-quarter revenue exceeded analysts‘ expectations, with first-quarter sales projections also surpassing forecasts.
- Stock Volatility: Despite the positive results, the stock fluctuated in after-hours trading as the earnings beat was less pronounced than in previous years.
- Blackwell Chip Success: Supply-chain issues for the new Blackwell chip have been resolved, and it is generating higher-than-expected revenue.
- Profitability Outlook: Adjusted gross margins for Q1 are expected to be 71%, falling short of estimates due to the costs of accelerating product launches. Nvidia anticipates profitability will recover in the second half of 2025.
- AI Market Growth: CEO Jensen Huang highlighted the growing demand for computing power, driven by advancements in AI, such as those by Chinese startup DeepSeek.
- Tariff Uncertainty: The impact of potential US government tariffs remains unclear at this stage.
