Nvidia Shares Dip Despite Strong Q4 Earnings Beat, Record Revenue: What's Going On?

Zinger Key Points

Nvidia reports record Q4 revenue of $39.3 billion, exceeding expectations, with strong growth in the data center segment.
Several analysts raise price targets for Nvidia, reflecting optimism about the company’s continued growth.
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NVIDIA Corporation NVDA shares are moving lower Thursday. The stock is reversing amid a possible trader selloff after reporting fourth-quarter financial results.

What To Know: Nvidia posted record revenue of $39.3 billion for the fourth quarter, surpassing the consensus estimate of $38.05 billion, according to Benzinga Pro. The company’s top-line results were up 78% year-over-year and 12% sequentially.

Earnings per share came in at 89 cents, versus analyst estimates of 84 cents per share. Nvidia reported 82% earnings growth on a year-over-year basis.

Nvidia's data center segment led the strong growth, generating $35.6 billion in revenue, up 93% year-over-year. Automotive revenue more than doubled to $570 million, while the gaming and AI PC segment saw a decline, reporting $2.5 billion in revenue, down 11% from the prior year.

The company's full fiscal-year revenue reached $130.5 billion, marking a 114% increase year-over-year and setting a new company record.

“We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries,” said Jensen Huang, founder and CEO of Nvidia.

Looking ahead, Nvidia provided first-quarter revenue guidance of $43 billion, plus or minus 2%, versus estimates of $41.75 billion. The company also expects non-GAAP gross margins to reach 71%.

Following Nvidia's quarterly results, several analysts raised price targets.

Truist Securities increased its target from $204 to $205 while maintaining a Buy rating. Morgan Stanley raised its target from $152 to $162 with an Overweight rating. BofA Securities lifted its target from $190 to $200 while maintaining a Buy stance. Needham reiterated its Buy rating with a $160 price target and Rosenblatt maintained a Buy and price target of $220.

NVDA Price Action: Despite the positive financial performance and upward price target revisions, Nvidia shares are under pressure on Thursday. Although the stock traded above $135 in early trading, it was down 3.18% at $127.09 at the time of publication, according to Benzinga Pro.