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Nvidia expected to report 68% Q4 revenue growth
Nvidia is set to release its fiscal Q4 results after the market closes on February 25, with LSEG consensus estimates expecting adjusted earnings of US$1.5 per share and revenue of US$66.2 billion, a 68% rise year-on-year.
Analysts anticipate the company will report its 11th consecutive quarter of revenue growth above 55%, driven by demand for AI hardware from major tech firms.
StreetAccount forecasts revenue from Nvidia’s data center segment to reach US$60.7 billion, up 70%, with data center hardware accounting for roughly 90% of total revenue.
Industry observers, citing Micron’s Sumit Sadana, are monitoring gross margin amid rising memory costs due to a global shortage.
On its last earnings call in November, Nvidia projected a gross margin around 75%, and Cantor analysts expect a similar or slightly higher figure, noting supply chain management is key to mitigating margin pressures.
Nvidia executives will discuss the results during an earnings call scheduled for 5 p.m. ET.
🔗 Source: CNBC
🧠 Food for thought
Implications, context, and why it matters.
The numbers behind Nvidia’s ~$66 billion quarter
- Analysts expect $66.2 billion in revenue. Nvidia guided to $65 billion, plus or minus 2%, on its November earnings call, so the consensus sits near the top of that range 1.
- That estimate adds roughly $9 billion in a single quarter compared with the $57 billion Nvidia reported for Q3 1.
- Rising memory costs could squeeze gross margin. Management said it aims to keep gross margins in the “mid-seventies” looking ahead to fiscal year 2027, while guiding Q4 gross margin to about 74.875%, plus or minus 50 basis points (a finance term meaning 0.50 percentage points) 1.
The AI boom’s hidden cost is a global memory shortage
- Nvidia’s pull for High Bandwidth Memory (HBM), a fast stacked type of memory used with AI chips, is adding to a wider supply crunch that leaves less memory for other tech companies 2.
- Chipmakers face a production trade-off. For every one bit of HBM they build, they give up making three bits of conventional memory used in PCs, phones, and cars 2.
- Prices for other buyers have jumped and supplies have tightened. PC maker Lenovo said memory prices rose 40% to 50% in the last quarter for the company 3.
