The most anticipated earnings report of the early part of 2025 is probably that from the second most valuable company in the world. Nvidia Corp. (NASDAQ: NVDA | NVDA Price Prediction) will reveal its fiscal fourth-quarter results on February 26.
Nvidia told Wall Street when it reported its results for the previous quarter that the current quarter would have $37.5 billion in revenue, plus or minus 2%. Its third-quarter earnings of $35 billion were up 94% year over year. Per-share earnings rose 103% to $0.81.
Nvidia has almost recovered from a 17% drop in its stock price following the release of the Chinese DeepSeek artificial intelligence (AI) product on January 28. Investors believed that DeepSeek required lower computing power than that needed by American AI companies. Nvidia even complimented the DeepSeek product. Since its release, some outsiders have questioned the DeepSeek claim.
Some analysts have revenue estimates that are higher than those Nvidia provided. The consensus among 42 analysts is that revenue for the current quarter will be $38.1 billion. That is 72% above revenue in the same quarter of last year. The highest estimate is $42.2 billion.
Nvidia’s earnings cannot be viewed in a vacuum. It is by far the largest provider of chips to an industry that plans to invest hundreds of billions of dollars to advance AI. It is considered the most important technology created in the past several decades. The investment world’s opinion about Microsoft, Alphabet, and Meta (a few of the public companies that want to be AI leaders) as well as privately held OpenAI and xAI (which have raised money at huge valuations), depend on Nvidia’s numbers.
If Nvidia’s earnings are weak, the share price could easily tumble 17% as it did just a few weeks ago. And if it does, it will take the stocks of other megatech companies with it.
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