Nvidia (NASDAQ:NVDA) sets the bars so high that what is considered an absolute great revenue for most businesses is simply a shrug off Wall Street when delivered by AI Chip Giant.
This follows the company’s January quarter (FQ4) printing release, followed by another Beat and Rays display, and the stock is tilted to red.
In the quarter, revenues rose 78% year-on-year to $39.33 billion, breaking street forecasts by $1.17 billion. Of that total, data center revenue reached $35.6 billion (a Street had $34.1 billion), with a Y/Y growth rate of 93%. The results were driven by the strong demand for a hopper-based platform as the H200 experienced successive growth. Furthermore, Blackwell’s revenues reach $11 billion, significantly exceeding previous expectations of management, which exceeded hundreds of millions.
While there is no doubt that the 93% growth is impressive, Nitpickers points out that it represents a slowdown from 112% growth notched in FQ3, far below the 400% rise seen in the same period last year.
Meanwhile, adj. The total margin reached 73.5% of the quarter, meeting the expectations of the consensus during adjustments. The $0.89 EPS defeated the analyst call for $0.04.
As for guides, Nvidia has also gotten better here, as it has become conventional. In the April quarter, revenue is expected to reach 2% or minus 2%, plus $43 billion. The total margin is expected to be 71.0%, plus or minus 50 basis points. However, I am sure that by the end of the year, the company will recover by the mid-70s (%). Management has reiterated that the main pressure on margin is due to the one-off transition to the NVL72 full rack scale system.
Looking at the results, Cowen analyst Joshua Buchalter said that Beat/Rais “is more moderate than in recent quarters, but investors have come to expect from Nvidia.” And while concerns continue around Blackwell’s lamps and new worries following “Deepseek’s Moment,” Nvidia continues to do its best.
Buchalter’s bearish takeaway was that the guide had 2% ahead of Street’s forecast, as “Sky-High expectations are likely to follow an otherwise incredible top-line result.” Additionally, there are “a (and inevitable) questions about this level of incredible growth and sustainability of demand.”
Still, Buchalter remains bullish, claiming that Nvidia is not only a leader in Accelerated Computing, but also building an undeniable technical moat. The company’s transformation from a GPU hardware giant to a full-fledged accelerated computing hardware/software platform provider remains firmly intact.
To this end, Buchalter’s Rate NVDA shares purchases supported by a price target of $175. If the numbers are met, investors will now pocket a 46% return per year. (Click here to see Buchalter’s achievements)
Most on the street agree with the paper. Based on the combination of 38 purchases and three holds, the analyst consensus makes NVDA inventory a strong purchase. At $178.66, the average price target is 49% and there is room for a 12-month return. (See NVDA Stock Prediction)
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Disclaimer: The opinions expressed in this article are the opinions of featured analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making an investment.
