Nvidia Reports Strong Earnings Despite AI Competition and Trade Concerns

CEO Jensen Huang emphasizes Nvidia's resilience in AI markets, growing automotive business, and long-term opportunities in sovereign AI projects.

Nvidia's Q4 2025 earnings exceeded Wall Street expectations, despite concerns over slowing growth and recent volatility in its stock price.
CEO Jensen Huang dismissed fears of competition from Chinese startup DeepSeek, highlighting that new AI reasoning models could drive higher computational demand, benefiting Nvidia's chip business.
Nvidia's automotive segment saw a 103% year-over-year revenue increase, with partnerships expanding across major automakers and robotics companies, and 2025 revenue projections reaching $5 billion.
Potential new U.S. trade restrictions on exporting AI chips to China could reduce Nvidia's fiscal 2026 revenue by $4-6 billion, impacting 13% of its current revenue base.
Experts point to sovereign AI infrastructure projects by nations like the EU and Canada as a significant long-term growth driver for Nvidia, even as short-term margin pressures weigh on investor sentiment.