Nvidia plans to release its fourth quarter revenue for February 2025 (FY 2025). On Wednesday, February 26th, 2025, after Market Close, this is a highly anticipated event, taking into account his position as a leader in AI and graphics processing units (GPUs). The report covers the period from November 1, 2024 to January 31, 2025, and marks the end of Nvidia’s fiscal year.
Economic expectations
The Analyst Consensus Project recorded quarterly revenue of $383.2 billion for the fourth quarter of 2010, reflecting a 73% increase from the previous year. This figure surpassed Nvidia’s own guidance provided in its third-quarter revenue report on November 19, 2024, forecasting revenue of $37.5 billion, and further negative Nvidia newsrooms of 2%. According to the same source, net income is expected to reach $21.08 billion, up from $12.84 billion in the same period last year.
Market sentiment and analyst evaluation
Analyst sentiment is overwhelmingly positive, with 17 of the 18 analysts issued “buy” or equivalent ratings, and one person is on hold as of February 20, 2025. The consensus price target is around $175, with the stock rising 26% from the $134.43 share price. February 20th, 2025. This bullish outlook is driven by the expectations of strong demand for Nvidia’s data center chips, particularly using the rollout. Of the Blackwell platform, it is expected to generate billions of dollars in fourth quarter revenue.
Key drivers and risks
A major factor in Nvidia’s expected performance is the burgeoning demand for AI infrastructure. Our key clients have significantly increased capital expenditures. META is planning to spend up to $65 billion on AI data centers in 2025, starting from $39.2 billion last year. This supports high revenue and revenue forecasts.
However, there have been some controversy about potential future demand, and recent news has revealed that Deepsey, a Chinese lab, has developed a way to train low-competitive AI models for computing power, Nvidia It emphasizes that it could reduce reliance on high-end chips. This has resulted in a stock price falling 11% since early January 2025, but analysts believe the impact will be reduced by increased inference workloads and client spending.
Guidance and Investor Focus
Beyond the numbers, investors will watch Nvidia’s guidance in the first quarter of fiscal year 2026, while analysts forecast revenues of nearly $42 billion. If management guidance exceeds this, it could reduce concerns regarding the DeepSeek development. Additionally, it is important to update the production lamps on the Blackwell Platform, which are currently launched in the fourth quarter and are expected to continue through 2026.
Historical background and trends
Nvidia has a strong track record of exceeding revenue estimates, breaking the consensus in 16 of the last 18 quarters. For example, revenue for the third quarter of 2025 was $35.1 billion, an increase of 94% year-on-year, and in the second quarter of 2020 it was $30 billion, an increase of 122% year-on-year. This consistent outperformance supports the expectations of a strong Q4 report.
Potential market reactions
Given high expectations, stocks could see significant moves after earnings. If the results match or exceed the $38.32 billion revenue, the consensus price target, in particular, could surge at $175. However, if the 201026 guidance is disappointing, or if there are supply chain issues, there can be volatility, especially given recent sales due to the development of Chinese AI.
Conclusion
In summary, investors should forecast NVIDIA’s robust earnings report on February 26, 2025, with revenue likely to be driven by strong AI demand and client investments. There is concern about future competition, but short-term performance appears to be solid, and market bullish outlook suggests potential benefits, while volatility remains a risk.
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