NVIDIA Corporation, the AI chip, and GPU giant, delivered a solid result with its latest NVIDIA earnings. A pioneer in the space, NVIDIA serves tech giants like Meta, Microsoft, and Alphabet, who are investing billions to secure NVIDIA's cutting-edge products.

With NVIDIA's Q4 results now available, we can better analyze recent stock movements and anticipate potential long-term price trends based on the company's announcements.

Revenue Growth

Despite intense competition from rivals like AMD, NVIDIA reported record-breaking revenue of $39.3 billion for Q4 2025, representing a 12% sequential increase and a 78% year-over-year rise. For the full fiscal year 2024-2025, total revenue reached $130.5 billion, an extraordinary 114% increase from the previous year.

Data centers, NVIDIA's primary growth driver, generated revenue of $35.6 billion in Q4, representing a 16% quarter-over-quarter increase and a 93% year-over-year surge.

Professional Visualization Q4 revenue reached $511 million, up 5% quarter-over-quarter and 10% year-over-year. Automotive and Robotics Q4 revenue totaled $570 million, up 27% quarter-over-quarter and 103% year-over-year. Gaming and AI PC Q4 revenue was $2.5 billion, down 22% quarter-over-quarter and 11% year-over-year.

The exceptional growth in the data center and automotive segments underscores NVIDIA's dominance in AI chips and signals the growing adoption of its GPUs across AI computing and data centers.

Earnings and Profitability

GAAP earnings per diluted share reached $0.89, reflecting an 82% year-over-year increase and a 14% rise from the previous quarter. Non-GAAP EPS also stood at $0.89, showing a 10% sequential increase and 71% year-over-year growth. For the fiscal year 2025, NVIDIA reported GAAP EPS of $2.94 and non-GAAP EPS of $2.99, up 147% and 130%, respectively, compared to the fiscal year 2024.

NVIDIA maintained a gross margin of 73% for Q4, slightly lower than the previous quarter's 74.6% and last year's 76%. Operating expenses increased to $4.689 billion, approximately a 48% year-over-year rise, indicating escalated R&D investments and operational scaling. However, this increase did not hamper the 77% year-over-year growth in operating income.

Immediate and Long-Term Impact on Stock Performance

Despite the promising earnings, NVIDIA's stock (NASDAQ: NVDA) experienced an immediate sell-off. This reaction can be attributed to two factors: first, NVIDIA's stock had already rallied in anticipation of strong earnings as predicted by analysts; second, the reaction aligns with the market's tendency to "sell the news," particularly for high-growth tech stocks trading at premium valuations.

Currently trading at $119.53 (as of March 17, 2025) with a market cap of $2.91 trillion and a P/E ratio of 40.66, NVIDIA remains a premium stock but at a more attractive valuation relative to its historical highs. This presents a potential buying opportunity as the company continues demonstrating growth potential and market dominance.

However, as noted in industry analysis, at 40 times earnings, NVIDIA's valuation assumes exceptional execution not just for the next few years but for the next decade, something possible but not guaranteed.

Investor Sentiments and Market Trends

The market shows two distinct investor perspectives on NVIDIA. Bullish investors view the company's accelerated growth and AI industry dominance as reasons to buy. Conversely, bearish skeptics point to rising competition, potential market saturation, and the volatile nature of the tech sector as reasons for caution. This split perspective is reflected in recent corrections in the broader NASDAQ tech index, which has impacted high-growth AI stocks, including NVIDIA.

Key Factors Affecting NVIDIA's Stock Price Post-Earnings

NVIDIA's core strength remains in AI and data centers, where demand for its products remains robust. The increasing adoption of AI applications, large language models, and cloud computing drives strong GPU sales. However, investors should consider whether the current growth rate in this segment will be sustainable in the upcoming quarters.

As CEO Jensen Huang noted in his recent presentation at GTC, he expects data center buildouts to reach $1 trillion "very soon. " Forecasts show data center capital expenditures growing from roughly $250 billion in 2023 to $500 billion this year and reaching $1 trillion by 2028. With 91% of NVIDIA's revenue coming from data centers in Q4, this projection suggests significant growth potential.

The AI industry faces intensifying competition as new players enter the market and existing ones innovate to maintain their positions. NVIDIA must remain vigilant of competitors such as AMD and Intel. The recently launched DeepSeek chatbot, which operates on less power-intensive though compromised processing, poses a potential challenge to NVIDIA's market share.

Future Product Roadmap

During a recent conference, CEO Jensen Huang announced that the Blackwell platform is now in full production, with "billions of dollars in sales in its first quarter." He also introduced the roadmap beyond Blackwell, with Rubin coming next year, followed by Feynman in 2028. Additionally, the company is partnering with General Motors to build self-driving cars, indicating NVIDIA's ambitions in robotics and autonomous vehicles.

Huang has emphasized NVIDIA's crucial role in AI, deep learning, and high-performance computing. With continuous product development and innovative launches, NVIDIA appears well-positioned for sustained growth in the AI industry and poised to maintain its dominance.

A key consideration for investors is NVIDIA's approach to shareholder returns through dividend payments and share repurchases. NVIDIA has been proactive in both areas, demonstrating its commitment to providing returns to shareholders. This approach helps maintain investor confidence while offering potential downside protection.

NVIDIA's latest earnings report confirms its commitment to sustained growth and leadership in the AI and data center markets, as evidenced by its outstanding revenue and profit figures. For long-term investors, NVIDIA is a compelling buy. Short-term investors, however, should approach with caution, considering the market's volatility and inherent risks. The stock price forecast is $227.73, a potential upside of over 93%.

Analysts are forecasting a 50% growth in earnings per share this year. At this valuation, NVIDIA is trading roughly on par with the S&P 500, potentially making it an attractive opportunity, given its momentum in AI, current growth trajectory, and the forecasted expansion in data center capital expenditures.

NVIDIA has long been one of the most significant players in the AI market, and its stock continues to be among the most actively traded and closely watched. Before investing, individuals should assess their risk tolerance and return expectations to make informed decisions that align with their financial goals.