It once again exceeds forecasts in its results

NVIDIA (NASDAQ; NVDA; US67066G1040) is a software and womanless (no foundry) which develops and markets graphics processing units, data processing and high-performance computing applications, as well as chips for the mobile computing and automotive industries. It is a leader in artificial intelligence hardware and software.

It is the No. 1 technology company for its GPUs, and its designs are the most in demand as AI rises, mainly because specific AI data centers require very high graphics computing, and Nvidia has been a pioneer in this space. offering a GPU that meets industry demands, particularly the H100 model.

NVIDIA results

Last night, NVIDIA reported results for the fourth fiscal quarter. Revenue in the fourth quarter grew 265% year-over-year.having reached some record revenue of $22.1 billion.. margins remain very high, gross was 76% and operating was 61.5%.resulting in operating income of $13.615 million and net profit 12.285 million rubles.

In the fourth quarter, the most prominent segments were again: data centers

. Data Center Computing Revenue growth +27% quarter-on-quarter and +409% year-on-yearreaching a record 18.4 billion.

high demand for accelerated computing NVIDIA is actively investing in developing infrastructure for LLMs (large language models), recommender systems, and general artificial intelligence applications. The annual income of the network business now exceeds $10 billion. Units NVIDIA H100 Tensor Core GPU Now they are available in almost all clouds and are in great demand.

One issue with the results is the sustainability of demand. The company’s message is that demand continues to outstrip supply. and will continue to do so in the coming quarters. Management expects its next-generation products (H200 and possibly B100) will also be constrained by supply as demand for these products exceeds supply. Regarding demand for the current year (NVIDIA fiscal year 2025), management simply noted that conditions remain excellent for further growth through 2025.which will become more important as the year progresses.

On the other hand, the GPU segment for The number of video games for the quarter was 2.9 billion and remains at the same level as last quarter, but growing at +56% year-over-year. . Nvidia has released the new GeForce RTX 40 Super Series GPUs.

Introduced less than six years ago, NVIDIA RTX is now a major PC platform for generative AI used by 100 million gamers and creators. The coming year will bring with it important new product cycles with exceptional innovations that will help propel our industry forward.

With this The results of the year reached $60.9 billion in sales, an increase of 126%. compared to the previous year.

Nvidia continues to be the company of choice for cloud giants for their data centers., as well as major data center providers to fill them. Its data center revenue grew from 6,696 million in 2021 to approximately 98,550 by the end of fiscal year 2025 (June 2025), mainly due to growth of artificial intelligence applications And greater acceptance by the general public.

Demand for data centers was strong in all regions except China, where it fell to 5% of data center sales, compared with 20-25% before US export restrictions. Nvidia is now testing its H20 chips for Chinese customers, which could be a tailwind if this interest translates into orders in the second semester.

Another possible catalyst for improvement is the launch of the B100 in late 2024, but this was not mentioned at the conference. Perhaps at the event on March 18 we will get more information about the new products.

Risks

The greatest concern is extremely high rating. After strong results, the company just overtook Amazon as the most valuable company in the market and trails Microsoft and Apple.
More and more customers are working on their own designs to reduce their dependence on Nvidia GPUs. but for now they far in terms of quality and efficiency, therefore, it is difficult for it to lose leadership in the short term. Google, Meta, Amazon and Microsoft are expected to become serious contenders before 2025-2026. Some of its historical competitors in the video game sector, such as AMD, are also working on GPUs for data centers and are its main competitor today.
If competitors manage to get ahead and start taking market share from Nvidia, we could see a major correction.

due to high analyst estimates for its growth.
Demand could decline in the event of a deep recession that would delay investment in AI for several years, but for now it appears that large companies are betting on this trend.

Fundamental Analysis

According to analyst consensus compiled by FactSet, the average price target is $738.17., which would represent a potential revaluation of yesterday’s closing price by 9.40%, although we are already starting to see upward revisions from some analysts. Analyst opinions published by FactSet break down as follows:

Technical analysis

Around the territory of the city. $760 is the ceiling of the long-term bullish channel., so this could be a favorable area for growth to slow and develop some short-term correction/consolidation. He currently has an opening price around this area. Initial support will cost $665.so if it turns lower at the highs it is expected to make today at the open, it could extend the correction phase that has developed in recent days in the range of around $665-$760.

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