Huawei Technologies is gearing up to test its latest AI processor, a powerful development that could eventually rival Nvidia's (NVDA, Financial) high-end products. This new processor from Huawei is still in the preliminary stages, with extensive testing required to assess its capabilities. Sources familiar with the situation indicate that Huawei's initiative reflects the company's ambition to provide an alternative to Nvidia's leading offerings in the AI sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 50 analysts, the average target price for NVIDIA Corp (NVDA, Financial) is $165.37 with a high estimate of $235.92 and a low estimate of $115.00. The average target implies an upside of 48.97% from the current price of $111.01. More detailed estimate data can be found on the NVIDIA Corp (NVDA) Forecast page.
Based on the consensus recommendation from 63 brokerage firms, NVIDIA Corp's (NVDA, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NVIDIA Corp (NVDA, Financial) in one year is $261.66, suggesting a upside of 135.71% from the current price of $111.01. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NVIDIA Corp (NVDA) Summary page.
NVDA Key Business Developments
Release Date: February 26, 2025
- Revenue: $39.3 billion for Q4, up 12% sequentially and 78% year on year; fiscal 2025 revenue was $130.5 billion, up 114% from the prior year.
- Data Center Revenue: $35.6 billion for Q4, up 16% sequentially and 93% year on year; fiscal 2025 data center revenue was $115.2 billion, more than doubling from the prior year.
- Gaming Revenue: $2.5 billion for Q4, decreased 22% sequentially and 11% year on year; full-year revenue was $11.4 billion, up 9% year on year.
- Professional Visualization Revenue: $511 million for Q4, up 5% sequentially and 10% year on year; full-year revenue was $1.9 billion, up 21% year on year.
- Automotive Revenue: $570 million for Q4, up 27% sequentially and 103% year on year; full-year revenue was $1.7 billion, up 55% year on year.
- Gross Margins: GAAP gross margin was 73%, and non-GAAP gross margin was 73.5% for Q4.
- Operating Expenses: GAAP operating expenses up 9% sequentially; non-GAAP operating expenses up 11% sequentially.
- Shareholder Returns: $8.1 billion returned to shareholders in Q4 through share repurchases and cash dividends.
- Q1 Outlook: Expected revenue of $43 billion, plus or minus 2%; GAAP and non-GAAP gross margins expected to be 70.6% and 71%, respectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NVIDIA Corp (NVDA, Financial) reported a record revenue of $39.3 billion for Q4, up 12% sequentially and 78% year-on-year, surpassing their outlook.
- Data center revenue for fiscal 2025 was $115.2 billion, more than doubling from the prior year, driven by strong demand for Blackwell and Hopper 200 products.
- The Blackwell product ramp is the fastest in the company's history, with $11 billion in revenue generated in Q4 alone.
- NVIDIA's inference demand is accelerating, with Blackwell offering up to 25x higher token throughput and 20x lower cost compared to previous models.
- Enterprise revenue increased nearly 2x year-on-year, driven by demand for model fine-tuning and AI workflows.
Negative Points
- Networking revenue declined 3% sequentially, although it is expected to return to growth in Q1.
- Gaming revenue decreased 22% sequentially and 11% year-on-year, impacted by supply constraints.
- GAAP gross margins were down sequentially due to the initial deliveries of the Blackwell architecture.
- China's data center sales remain well below previous levels due to export controls, with no expected change in the near future.
- The complexity and customization of Blackwell systems present challenges in manufacturing and gross margin improvements.
