Nvidia (NASDAQ: NVDA) continues to dominate the artificial intelligence (AI) chip market, reporting record earnings for the fourth quarter of fiscal 2025. The company’s financial performance exceeded expectations, with revenue surging to unprecedented levels. Despite volatility in Nvidia’s after-hours stock price, the company remains a key player in the semiconductor industry, backed by increasing demand for AI-powered computing solutions.
Record-Breaking Quarterly and Annual Performance
For the fourth quarter of fiscal 2025, Nvidia posted a record-breaking revenue of $39.3 billion, representing a 12% increase from the previous quarter and a 78% jump compared to the same period last year (Nvidia Investor Relations). The company’s data center segment was a primary driver of growth, contributing $35.6 billion in revenue—up 16% from Q3 and an astounding 93% from the prior year.
Nvidia’s full-year revenue for fiscal 2025 also set new records, reaching $130.5 billion, a 114% increase from the previous year. The company’s GAAP earnings per diluted share stood at $0.89 for the quarter, marking a 14% rise from Q3 and an 82% increase from a year ago. Non-GAAP earnings per diluted share were also strong at $0.89, reflecting a 10% sequential rise and a 71% year-over-year jump (CNBC).
For the entire fiscal year, Nvidia reported GAAP earnings per share of $2.94, a 147% increase, while non-GAAP earnings per share climbed 130% to $2.99. These remarkable gains underscore Nvidia’s leadership in AI-driven computing and its ability to capitalize on the growing demand for high-performance chips.
Blackwell AI Supercomputers Fuel Demand
A significant contributor to Nvidia’s robust performance is the success of its Blackwell AI supercomputers. CEO Jensen Huang emphasized that Blackwell has exceeded expectations, driving billions of dollars in sales within its first quarter. Huang noted, “Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter, and increasing compute for long thinking makes the answer smarter” (Earnings Call Transcript – Seeking Alpha).
The Blackwell series has been pivotal in Nvidia’s strategy, allowing the company to maintain its competitive edge despite challenges from emerging players like DeepSeek, a Chinese AI company introducing lower-cost models. Nvidia executives reassured investors that Blackwell’s strong demand, combined with the upcoming transition to Blackwell Ultra, would sustain the company’s growth trajectory.
Market Expectations and Nvidia’s Response
Nvidia’s earnings call was highly anticipated, especially given concerns about potential slowdowns in hyperscale cloud spending and increased competition in the AI chip market. The company’s fourth-quarter revenue of $39.33 billion not only surpassed Wall Street’s consensus estimate of $38.25 billion but also exceeded analysts’ “whisper number” target of $39 billion (Reuters).
Nvidia’s CFO Colette Kress confirmed that Blackwell’s demand had outpaced internal projections, signaling strong adoption among enterprise and cloud computing customers. The company’s upbeat guidance for the first quarter of fiscal 2026 further reassured investors, with projected revenue of $43 billion surpassing expectations of $41.78 billion (Yahoo Finance).
However, Nvidia’s gross margins faced some pressure due to ramped-up Blackwell production. Kress acknowledged potential risks from proposed U.S. tariffs under President Donald Trump’s administration, stating that the timing and extent of these tariffs remain uncertain. Despite these concerns, she expects gross margins to improve later in the year.
Nvidia’s After-Hours Stock Price Volatility
Following the earnings release, Nvidia stock exhibited volatility in after-hours trading, initially dipping by as much as 2% before stabilizing. During regular trading hours on the day of the earnings call, Nvidia stock rose by 3.7% to close at $131.28. However, in extended trading, the stock alternated between gains and losses, ultimately declining by 1% to $129.94 (MarketWatch).
Investors reacted cautiously as they digested details from the earnings call, particularly concerns about Blackwell’s production hiccups and potential regulatory headwinds. Despite these short-term fluctuations, Nvidia remains a strong long-term player in the AI and semiconductor industries.
Key Technical Levels for Nvidia Stock Price
From a technical analysis perspective, Nvidia stock is currently in a consolidation phase. Key support levels to monitor include $130, $113, and $96. A breakdown below $130 could trigger a more significant correction, while further selling pressure could drive the stock down to $113 or even $96 (TradingView).
On the upside, resistance levels at $153 and $255 are critical areas for investors to watch. A move past $153 could signal a bullish breakout, potentially driving Nvidia stock price toward its record highs. The stock’s long-term outlook remains positive, especially if it can sustain its current growth trajectory in AI and data center revenues.
Competition and Market Risks
While Nvidia continues to dominate the AI chip market, it faces growing competition from its own customers, who are developing custom AI chips in collaboration with companies like Broadcom (AVGO) and Marvell Technology (MRVL) (Bloomberg). Additionally, regulatory challenges, including export controls on high-performance AI chips to China, could impact Nvidia’s ability to maintain its stronghold in international markets.
Another factor to consider is the broader economic environment. Market sentiment toward tech stocks has been mixed, with concerns about interest rates, inflation, and potential slowdowns in corporate AI spending influencing investor decisions. Despite these headwinds, Nvidia has demonstrated resilience by continually delivering strong financial results and setting new revenue records.
Future Outlook and Investor Sentiment
Looking ahead, Nvidia’s earnings call highlighted the company’s confidence in sustaining its momentum. Jensen Huang emphasized that AI is evolving beyond generative models into reasoning and agentic AI, which will require even greater computational power. This shift is expected to drive continued demand for Nvidia’s advanced AI chips.
Nvidia’s earnings results reaffirm its position as a market leader, with strong fundamentals and strategic investments in next-generation AI technologies. The company’s guidance for Q1 2026 suggests continued growth, though investors should remain cautious of potential regulatory and competitive pressures.
Despite the recent volatility in Nvidia’s after-hours stock price, the long-term outlook remains bullish, with the company well-positioned to capitalize on the expanding AI-driven economy. Investors will closely watch Nvidia stock price movements and updates from future earnings calls to gauge the company’s trajectory in an increasingly competitive semiconductor market.
References
- Nvidia Investor Relations: https://investor.nvidia.com
- CNBC: https://www.cnbc.com/quotes/NVDA
- Seeking Alpha: https://seekingalpha.com/symbol/NVDA/earnings
- Reuters: https://www.reuters.com/markets/companies/NVDA.OQ/
- Yahoo Finance: https://finance.yahoo.com/quote/NVDA/
- MarketWatch: https://www.marketwatch.com/investing/stock/nvda
- TradingView: https://www.tradingview.com/symbols/NASDAQ-NVDA/
- Bloomberg: https://www.bloomberg.com/quote/NVDA:US
