Nvidia Retreats After Strong Q4 Results
Nvidia's (NVDA) stock is dropping 1.5% after the chip maker reported stronger-than-expected fourth-quarter results and provided 2025 sales guidance that was also above analysts' average estimate, despite a cautious outlook on gross margins. The company's revenue from data centers more than doubled year-over-year last quarter, with sequential growth strongest in the U.S., and Blackwell shipments exceeded expectations. However, NVDA still faces challenges as it transitions to new graphics processing units (GPUs).
- This retreat highlights the risks associated with NVIDIA's high-growth model, which may be difficult to sustain in a rapidly changing technology landscape.
- Will investors be willing to overlook these concerns for the potential long-term rewards of owning a leader in the rapidly expanding field of AI and autonomous vehicles?