The stock appears to be forming a base after weathering the storm. With fundamentals intact, confidence of investors seems to be returning in AI stocks, particularly after seeing strong reports from Microsoft and Meta.
NVIDIA Corporation (NASDAQ: NVDA)
NVIDIA's Q4 FY25 earnings report indicates a period of substantial financial growth and development. The company announced record revenue of $39.3 billion (Up 78%) demonstrating strong overall performance. This revenue figure surpassed the company's initial projections, highlighting stronger-than-anticipated market demand. A significant contributor to this revenue growth was the Data Center segment which achieved $35.6 billion in revenue marking a 93% increase year-over-year. It emphasizes the role of the Blackwell architecture in driving revenue within this segment.
The revenue outlook for NVIDIA in the first quarter of fiscal year 2026 points to approximately $43.0 billion, with a potential upside or downside of 2%. The company anticipates continued growth across its key business segments, specifically in the Data Center and Gaming sectors. Within the Data Center segment, NVIDIA forecasts sequential revenue growth in both Compute and Networking.
Key financial metrics include gross margins and operating expenses. The projected gross margin for the first quarter of fiscal year 2026 is 70.6% under GAAP and 71.0% on a non-GAAP basis, with a possible fluctuation of 50 basis points in either direction. Operating expenses under GAAP are projected at roughly $5.2 billion, and non-GAAP operating expenses are estimated at about $3.6 billion.
The company's cash flow from operations for Q4 FY25 was $16.628 billion, representing a 45% increase compared to the same period in the previous year, but a 6% decrease compared to the prior quarter. NVIDIA allocated its cash towards various purposes, including shareholder returns through share repurchases and cash dividends, as well as investments in capital expenditures.
NVIDIA operates across several key business segments: Data Center, Gaming, Professional Visualization, and Automotive. Recent developments include the introduction of new GeForce RTX 50 Series Desktop and Laptop GPUs, which incorporate enhanced AI capabilities. The company is also actively involved in advancing the field of artificial intelligence through the development of platforms such as Blackwell, Cosmos (designed for physical AI and robotics), and Nemotron model families (intended for AI agents). NVIDIA is also pursuing strategic partnerships and collaborations in various sectors, including the automotive industry (e.g., with Toyota, Aurora, and Continental) and the healthcare industry (e.g., with IQVIA, Illumina, and Mayo Clinic).
(Source: Company Announcements)
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