Nvidia(NASDAQ: NVDA) Investors are used to positive surprises. The best artificial intelligence designer (AI) surpassed the analyst earnings and delivered a double or three -digit quarter growth after a quarter lately. This is thanks to the power of NVIDIA in this market blooming chips and the movement of the company to go all-in to AI, offering customers a complete selection of related products and services.
And this technological power plant was not disappointed in its fourth quarter and a fiscal complete report of 2025. Last week, reporting revenues better than expected and net income It increased to record levels. On top of all, Blackwell-Nvidia-Ina is a new architecture that changes in the game-developed scene in the fastest ramp of the company ever. Nvidia has offered various details about her market position and what is forward for AI, signaling that growth is far from the end.
After this type of report, you could expect Nvidia’s supplies to grow. But in fact, it’s not. The shares slid more than 9%on Thursday after the report, and then on Friday they continued just under 4%. So, after such a positive earning report, why don’t the shares leave? Let’s find out.
Picture source: Getty Images.
First, the summary of the story of Nvidia so far. As mentioned, the company is a leader in the market of AI chip, with its Graphics processing units (GPU) To be most sought after for critical tasks such as training and infections of large language models (LLMS). This resulted in a constant great demand for their chips and other products, helping with quarterly revenues grow up after the full year of revenue, two years ago.
Nvidia is an early player in the space, so he has the advantage of the first on the market. However, the commitment to the innovation company held its leadership. The technological giant promises to update the GPU -LIGHT, a huge task that the company performs well.
Blackwell was launched during the fourth quarter, earning $ 11 billion in revenue immediately outside the door. Executive director Jensen Huang says demand remains “extraordinary” because the world’s largest technological companies move to this new adaptable product. It offers them a choice of chips, networking options and more.
Nvidia said during her earnings to call the big cloud service providers – it comes to mind companies like Amazon or MicrosoftFor example – make up for half of the income from its data center. These are players with solid financial and large calculations, which means that they have what it takes to invest in premium chips and related products, which is a positive sign for Nvidia.
The company aims to publish Blackwell Ultra later this year, followed by Rubin Architecture. All this makes it difficult for rivals to compensate and provide Nvidia’s leadership. On top of that, the company is ready to execute in the following stages of growth of AI, such as developing the locking of the explanation (a longer “thinking” process that can compensate for LLMS performance) and agentic AI (application of technology to real world problems).
Finally, set on the background of the high-growth industry, with forecasts for today’s AI $ 200 billion market to increase more than $ 1 million, there is further support for the idea of the long-term power of NVIDIA.
In the recent quarter, Nvidia reported on an increase in revenue of 78% to a record $ 39 billion, and a year -round revenue increased 114% to a record $ 130 billion. The company also envisaged a double -digit revenue growth for the first quarter, with expectations of $ 43 billion revenue.
Let’s get back to our question: Why are Nvidia supplies not increasing after this strong three -month performance and bright prospects? It is important to remember that the shares have climbed to more than 1,700% in the last five years, so investors can choose such times to lock themselves at a particular profit. Nvidia Stock has not progressed in the straight line in recent years and has passed during certain periods, although earnings and other news were positive.
In fact, earnings on earnings have not necessarily led to the current effect in the recent past: Nvidia shares actually fell In the month after the last two reports, although these reports were solid.
So what does that mean for investors? Over time, Nvidia has shown a strong earning and price price, and all traces currently indicate more of the same movements forward. This means that now, on the fall, with Nvidia trade for just 27 times the earnings of earnings in advance, a fantastic time to enter stock.
If Nvidia’s shares do not grow up immediately after the earning report, that’s okay. What is important is the content of the report, and the latest show that the technological giant has what is needed to continue progress over time.
Have you ever felt like you missed the ship in buying the most successful stocks? Then you will want to hear it.
On rare occasions, our expert team of analyst issues “Double” supplies Recommendation to companies they think will appear soon. If you are worried that you have already missed the opportunity to invest, now is the best time to buy before it is too late. And numbers speak for themselves:
Nvidia:If you invested $ 1,000 when we doubled in 2009,You would have $ 323,920!*
Apple: If you invested $ 1,000 when we doubled in 2008, You would have $ 45,851!*
Netflix: If you invested $ 1,000 when we doubled in 2004, you would have $ 528,808!*
We are currently releasing “double down” warnings for three incredible companies, and maybe there will be no other chance like this.
John Mackey, former Whole Foods Market CEO, Amazon Branch, is a member of the Board of Directors Motley Fool. Adria Cimino He has positions in Amazon. Motley Fool has positions and recommends Amazon, Microsoft and Nvidia. Motley Fool recommends the following options: Long January 2026. $ 395 calls Microsoft and short January 2026. $ 405 calls to microsoft. Motley Fool has disclosure rules.
