Particle.news
Download on the App Store
9 ARTICLES
·
8mo ago

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.

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

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.