Nvidia (NVDA) is set to report its Q4 2024 earnings on Wednesday, February 26, after the closing bell. The stock’s Q4 performance will provide insights into recent developments inside the chip industry and company highlights.
Analysts expect strong numbers from Nvidia. The chipmaker is expected to post record sales and demand. ⁽¹⁾
Source: Trading View
What’s in Focus?
Nvidia’s quarterly earnings are a key stock market mover. The chipmaker is always in the spotlight when it comes to earnings. This time around, investors will be looking for Nvidia’s numbers to provide fresh insights into the artificial intelligence boom.
This comes as Chinese enterprise DeepSeek recently entered the global markets as a potential disruptor, which gathered attention in recent months for its advanced yet cheaper AI models and applications. ⁽²⁾
DeekSeek’s AI capabilities are rumored to perform stronger than its US competitors, including a chatbot that rivals OpenAI’s ChatGPT. Furthermore, DeepSeek’s operations are much cheaper, which has sparked concerns about demand for Nvidia’s AI chips. ⁽³⁾
Despite emerging competition like DeepSeek, major technology companies such as Amazon, Meta and Alphabet will be committed to increasing investments on AI production by using Nvidia chips.
However, analysts are monitoring challenges such as supply chain and production issues, especially with the Blackwell chips product, a major product by Nvidia. Blackwell chips, among others, could be affected by restrictions on chip exports to China. ⁽⁴⁾
The company’s dominance in AI, data, and gaming centers remains in focus as these segments are expected to generate most of the company’s revenue. ⁽⁵⁾
Any comments from CEO Jensen Huang will also impact the stock’s performance, especially regarding tariffs, supply chains, Nvidia products, and economic concerns.
Key Focus Areas for Nvidia’s Q4 Earnings
- Revenue and Growth
- AI and Data Center Updates
- Competition and Geopolitical Risks
- Margins and Profitability
- Blackwell Chip Production
- Gaming Segment
- Capital Expenditure
- Future Guidance
- Management Comments
Market Expectations
Wall Street Expectations:
- Earnings per Share (EPS): $0.85
- Revenue: $38 billion
Nvidia has faced volatility since the market sell-off in January 2025 caused by Deepseek’s launch. Traders and investors are now anxiously awaiting Nvidia’s Q4 results.
With a market cap of $3.29T, Nvidia is the largest holding in the S&P 500 and Nasdaq outside of Apple. Nvidia’s stock tends to be more volatile than Apple’s and could heavily influence the broader indices’ direction from here. ⁽⁶⁾
Chip Tariff Threats
Nvidia is also facing a new threat. Tariffs.
A Bloomberg report stated that President Trump will place restrictions on chip exports from Nvidia to China and chip imports from Taiwan. Nvidia has a strong relationship with TSMC (Taiwan Semiconductor Manufacturing Company), as Nvidia uses its processors to build chips. ⁽⁷⁾
Many analysts are still bullish on Nvidia. Wedbush and Oppenheimer analysts, who maintained their price targets at $175, suggest the company could be in for another strong quarter, citing booming demand for Nvidia’s advanced chips. ⁽⁸⁾
Oppenheimer also indicated that the rapid rise of Chinese AI startup DeepSeek could ultimately prove “positive” for the chipmaker, as competition pushes Nvidia’s American clients to step up their efforts in the AI race instead of pulling back. ⁽⁹⁾
While strong Q4 results from Nvidia could help lift markets back toward their highs, traders and investors must also keep an eye on geopolitical tensions related to Trump’s tariffs.
