Nvidia (NASDAQ: $NVDA), a pioneer in GPU-accelerated computing, released its Q4 fiscal 2025 results on Wednesday after market closed. The results come out amid an AI revolution led by China’s DeepSeek. Let us take a deep dive into the company’s results.
Nvidia Q4 Fiscal 2025 Results
For the fourth quarter of fiscal 1015, Nvidia reported a record revenue of $39.3 billion, a 12% increase from the previous quarter, and a 78% increase from the previous year, beating estimates of $38.05 billion. Adjusted EPS came in at $0.89, a 10% increase from the previous quarter, and a 71% increase from last year, beating estimates of $0.84.
Other Q4 Highlights
It reported a non-GAAP gross margin of 73.5%, down 3.2 points from the previous year, while the non-GAAP operating income was up 73% YoY to $25.52 billion. Meanwhile, the non-GAAP net income was up 72% YoY to $22.07 billion.
Data center revenue was up 93% YoY to a record $35.6 billion in Q4, while gaming revenue was down 11% from the previous year to $2.5 billion in Q4.
Professional Visualization revenue increased 10% YoY to $511 million in Q4, while Automotive and Robotics revenue was up 103% YoY to $570 million.
Full-Year Highlights
Nvidia reported a record $130.50 billion in full-year revenue, up 114% YoY, while the adjusted EPS was up 130% YoY to $2.99. The company reported a 1.7-point increase in non-GAAP gross margin to 75.5%, while the non-GAAP net income was up 130% YoY to $74.27 billion.
Full-year gaming revenue was 9% to $11.4 billion, while full-year Automotive revenue was up 55% YoY to $1.7 billion. Nvidia reported a 142% increase in Data Center revenue to a record $115.2 billion, while full-year Professional Visualization revenue was up 21% to $1.9 billion.
Major Announcements
In the Q4 earnings report, Nvidia revealed that it was a key technology partner of the $500 billion Stargate Project announced by Trump. The company also revealed that Toyota, the world’s leading automaker, would build its next-gen vehicle using the NVIDIA DRIVE AGX Orin™ running the safety-certified NVIDIA DriveOS operating system.
Q1 Outlook
For the first quarter of fiscal year 2026, Nvidia expects revenue of $43 billion at the midpoint, which would be a 65% YoY increase compared to 262% growth last year. The revenue forecast is above analysts’ estimate of $41.78 billion. It also expects a non-GAAP gross margin of 71% at the midpoint and non-GAAP operating expenses of $3.6 billion.
Nvidia Market Performance
Following the positive Q4 results, the stock gained 1.82% in pre-market trading to $133.10 per share as of 7:02 AM EST on Thursday, February 27, 2025. Nvidia (NVDA) has been one of the best-performing stocks, rising 65.98% in the past year.
Over the past six months, it is up 3.81%, while over the five years, its value is up 1,861.97%. If you had invested in NVDA when it went public on January 22, 1999, your investment would have appreciated 299,968.58% as of February 27, 2025.
Analysts remain optimistic, giving NVDA stock a strong buy rating. They forecast a high of $220 and a low of $135. Their average forecast of $178.56 represents a 36.01% upside based on Wednesday’s closing price.
Is Nvidia Still A Great Investment Amid The Rise Of DeepSeek?
Following the release of DeepSeek on January 10, 2025, Nvidia saw its market cap dip by nearly $600 billion. Many investors were surprised when Nvidia reacted positively to the news. While many AI companies have downplayed the impact of DeepSeek, Nvidia sees it as an opportunity.
On Tuesday, February 25, 2025, NVIDIA AI Developer, announced that it was partnering with DeepSeek to bring DeepSeek R1 optimizations to their Blackwell architecture. The opportunity is huge, with up to 25x more revenue at 20x lower cost per token.
Overall, that could help lower the cost of AI for small companies, making AI ubiquitous in everyday use cases. The result is that NVIDIA will have the opportunity to deliver more volumes to a wider customer base.
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