Yesterday, Nvidia released its highly anticipated earnings report, and it did not disappoint. Adjusted earnings per share (EPS) rose 9.88% quarter-over-quarter and 71.15% year-over-year, reaching $0.89, which was 5.49% above market consensus. 

Revenue exceeded market expectations by 2.84%, reaching $39.3 billion, reflecting a 12.11% increase from the previous quarter and a 77.94% increase compared to last year’s fourth quarter. 

The biggest revenue driver, data center revenue, beat market expectations by 4.30%, reaching $35.58 billion, an increase of 25.38% from the last quarter and a whopping 109.67% compared to last year’s final quarter. 

On a yearly basis: 

• Nvidia’s EPS grew by 130%, 

• Revenue increased by 114.20%, 

• Data center revenue surged by 142.37%. 

The earnings report confirmed that the AI business is accelerating at full speed, though logarithmic growth is gradually moderating. According to CEO Jensen Huang, demand for Blackwell is “insane.” Nvidia’s Blackwell revenue reached $11 billion this quarter. The company also plans to launch the next version of the Blackwell Ultra Series later this year and introduce the Rubin generation in 2026. 

Huang painted an optimistic picture for the future, stating that we are only at the beginning of a new era and that demand for AI capabilities will grow massively. He emphasized that physical AI machinery and AI-powered robots will shape the future. AI initiatives such as the U.S.’s $500 billion “Stargate” project and the EU’s $200 billion InvestAI program signal further growth in AI demand. 

(Nvidia) 

The market was not overly impressed by Huang’s optimism or Nvidia’s earnings report. Investors have grown accustomed to booming growth over the last few quarters, but with growth now gradually normalizing, concerns are emerging. Chip restrictions against China, a strong U.S. dollar, and competition from DeepSeek are seen as potential threats to Nvidia’s future expansion. 

However, Nvidia’s valuations have become more normalized over the years. The price-to-earnings (P/E) ratio has been steadily declining to more reasonable levels, even as the stock price continues its upward trend. The forward P/E from market consensus suggests that further growth is expected in 2025, albeit at a slower pace, especially in the first quarter. The 12-month price target stands at $175.42, more than 30% above the current price, though Nvidia has consistently beaten market expectations in recent years, suggesting this target might be a bit conservative. 

From a technical standpoint, Nvidia’s price is capped at the 153 resistance level, but underlying upward price pressure remains strong. The stock has stabilized around the 100- and 200-day moving averages and is likely to stay within this range for a while. However, any sudden downside moves could present buying opportunities for both medium- and long-term investors.