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Nvidia Faces Critical Earnings Test as Competition Intensifies

The chip giant must demonstrate its ability to scale production and maintain dominance against rising challenges, particularly from China's DeepSeek.

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Jensen Huang, Nvidia co-founder and CEO, speaks about the company's Blackwell capabilities during January 2025's CES event in Las Vegas,
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Overview

  • Nvidia will release its fiscal Q4 and full-year 2025 earnings on Wednesday, with analysts expecting $38.2 billion in revenue (up 72.6%) and $0.85 earnings per share (up 60%).
  • The company must address growing competition from DeepSeek, a Chinese AI firm claiming to build competitive AI models using lower-cost chips not restricted by U.S. export controls.
  • Nvidia's Blackwell GPUs are under scrutiny to deliver at scale, sustain premium pricing, and reduce year-long wait times to maintain its market dominance.
  • DeepSeek's January announcement caused Nvidia's stock to drop 17%, though most of those losses have since been recovered, with shares closing at $134.43 on Friday.
  • Investors are also watching for Nvidia's fiscal 2026 outlook, as the company faces heightened pressure to meet high expectations in the rapidly evolving AI ecosystem.