As of today, February 26, 2025, NVIDIA (NVDA) is set to release its fourth-quarter fiscal year 2025 earnings after the market closes. The general consensus among analysts is overwhelmingly positive, driven by NVIDIA’s dominant position in the AI and GPU markets. Analysts expect NVIDIA to report record quarterly revenue of approximately $38.32 billion for Q4 FY2025 (covering November 1, 2024, to January 31, 2025), a 73% increase year-over-year. This figure exceeds NVIDIA’s own guidance of $37.5 billion (plus or minus 2%), reflecting strong market confidence. Net income is projected to reach $21.08 billion, up from $12.84 billion in the same quarter last year, with earnings per share (EPS) anticipated at around $0.84 to $0.85, compared to the Zacks Consensus Estimate of $0.84, marking a 61.54% year-over-year increase.

The bullish sentiment is supported by NVIDIA’s consistent track record of beating earnings estimates—doing so in 16 of the last 18 quarters—and the surging demand for its data center chips, particularly with the rollout of the Blackwell platform, which is expected to contribute billions in Q4 revenue. Major tech companies like Meta, Alphabet, and Amazon are ramping up AI infrastructure investments (with planned expenditures of $65 billion, $75 billion, and over $100 billion in 2025, respectively), further fueling optimism. Analyst ratings reflect this enthusiasm, with 17 out of 18 analysts issuing “buy” or equivalent ratings and a consensus price target of around $175, suggesting a 26% upside from the February 20 stock price of $134.43.

However, there’s some nuance to the consensus. While short-term performance looks robust, concerns linger about future demand due to innovations like those from DeepSeek, a Chinese lab developing AI models with less computing power, potentially reducing reliance on NVIDIA’s high-end chips. This has contributed to an 11% stock drop from its early January 2025 high, though analysts largely view this as a temporary hiccup given the offsetting increase in inference workloads and client spending. Investors are also keenly awaiting NVIDIA’s Q1 FY2026 guidance, with expectations of around $42 billion in revenue. A guidance beat could further bolster confidence, while any shortfall might introduce volatility, especially given the stock’s high expectations and recent sell-off pressures.

In summary, the general consensus is that NVIDIA’s Q4 earnings will be strong, likely meeting or exceeding expectations, driven by AI demand and Blackwell’s rollout, though the market remains sensitive to forward-looking guidance amidst emerging competitive dynamics.