Nvidia predicts $43 billion in Q1 sales
Nvidia CEO Jensen Huang predicts strong growth in 2025
Nvidia Corp., the chipmaker that has become synonymous with the AI revolution, reported solid earnings on Wednesday but fell short of investor expectations.
For the fiscal first quarter, Nvidia forecast sales of $43 billion, slightly above analysts’ consensus of $42.3 billion, though some projections had reached as high as $48 billion. Despite the positive sales guidance, the company issued a warning about tighter-than-expected profit margins as it rushes to launch its new chip design, Blackwell, reports Bloomberg.
Additionally, there are concerns about the impact of U.S. tariffs on Nvidia’s results. In after-hours trading, shares slipped by less than 1%, reflecting a muted response from investors who had grown accustomed to dramatic growth from the chipmaker.
AI Spending Surge Faces Headwinds
Nvidia’s mixed quarterly performance comes at a critical juncture for the AI industry. While demand for its chips, which power AI software and data centers, remains strong, concerns have emerged about slowing spending from data center operators.
Further complicating the outlook, a Chinese startup called DeepSeek has raised fears that the development of chatbots could be done at a lower cost, potentially reducing the need for Nvidia’s chips. Despite these challenges, Nvidia remains the biggest beneficiary of the AI spending boom, with its revenue doubling in the last two years.
In the fourth quarter, Nvidia posted revenue of $39.3 billion, matching analyst estimates. However, the results showed the smallest margin of upside since February 2023. The company’s earnings were reported at 89 cents per share, surpassing Wall Street’s expectation of 84 cents.
While Nvidia’s stock has dipped 2.2% in 2025, following extraordinary gains in 2023 and 2024, CEO Jensen Huang remains confident, stating that “we will grow strongly in 2025.”
Despite the mixed earnings report, Nvidia’s early success with its Blackwell chip and its dominance in the AI space indicate that the company will likely remain a key player in the technology sector. As the AI industry continues to evolve, Nvidia’s future growth will depend on how it navigates supply chain challenges, tariffs, and emerging competition in the AI hardware market.
Earlier, Nvidia and Cisco are deepening their collaboration to help businesses overcome the complexity of AI adoption, making it easier for companies to integrate advanced AI systems into their data centers.
