From Nasdaq: 2025-02-27 15:42:16

Nvidia (NASDAQ: NVDA) is a key player in the AI revolution, with GPUs driving AI processing. Concerns arose when Chinese start-up DeepSeek developed an AI model using older GPUs, but Nvidia’s Q4 results eased fears. Revenue hit $39.3 billion, up 78%, with record data center demand propelling growth.

CEO Jensen Huang addressed concerns over DeepSeek, stating it would boost demand for Nvidia’s processors. Nvidia’s Q4 results beat expectations, with record data center revenue of $35.6 billion. Despite a slight decline in gross margin, Nvidia’s future looks promising, with projected record Q1 revenue of $43 billion.

Despite concerns, Nvidia is well-positioned to benefit from the generative AI market’s potential economic impact. With the stock trading at an attractive price and expected revenue and EPS growth, Nvidia remains a buy. The Motley Fool’s Stock Advisor team identified Nvidia as a top stock pick for investors, with significant potential returns.

Author Danny Vena has positions in Nvidia, and The Motley Fool recommends and has positions in Nvidia. The author’s views do not necessarily reflect those of Nasdaq, Inc.



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