Markets awaits Nvidia Earnings Report

• Nvidia will announce its business results for the fourth quarter of 2025, with expectations that they will exceed what the company indicated in the previous quarter’s statement.
• Despite the global concerns raised by the Chinese application, optimism surrounds the results of the Taiwanese company's business.
• In addition to the company's earnings report, it is worth monitoring a very important matter in the company's statement accompanying the companies' business results.

Introduction:

Despite the years of brilliance of the Taiwanese company Nvidia, especially after the launch of the artificial intelligence revolution, it was subjected to a violent shock at the end of January due to the Chinese artificial intelligence-supported chat application DeepSeek, which used less advanced chipsets from the same Taiwanese company and at costs competitive with the largest international companies, which raised doubts in technological circles regarding the billions spent by competing global companies.

However, the Taiwanese company was quickly able to reduce the huge losses it was exposed to, which in one day amounted to about 600 billion US dollars, bringing the percentage of its losses since the beginning of this year to about 3%.

What are the markets waiting for from Nvidia?

Analysts and observers are awaiting the first exam for Nvidia after this huge shock last month. The company will announce its business results for the fourth quarter of 2025 (which covers from November 2024 to the end of January 2025) after the markets close tomorrow, Wednesday.

Expectations indicate that the company may achieve revenues of about 38 billion US dollars, an increase of 8% from the previous results, which amounted to about 35 billion US dollars in the third quarter, which is a decline from the growth rate achieved by the company in the third quarter when it achieved growth of 17%.

Expectations also indicate that the company's earnings per share will rise by 4% to reach $0.8448, which is also a decrease in the growth achieved by earnings per share in the previous quarter when it grew by 19%.

These optimistic forecasts come due to strong demand for artificial intelligence and customer investments, despite concerns about future competition.

What is the secret of optimism in the Nvidia Earnings Report?

Despite the concerns that surrounded the company after the launch of the Chinese application, analysts are quite optimistic about the company's stock, in addition to the statement of the company's CEO, Jensen Huang, that this application is an exciting development and is not considered a threat.

In fact, the expected profits, despite their lower growth than the third quarter, are higher than the numbers presented by Nvidia in the previous quarter’s earnings report, which was estimated at about 37.5 billion US dollars, plus or minus 2%. 

What should you focus on besides business results?

Observers and analysts will focus their attention on the company's statement, specifically with regard to its outlook for the first quarter of 2026, as most analysts expect that the company will be able to achieve revenues of about 42 billion US dollars, especially since it is the quarter that may confirm or deny fears that the company's business will be affected by what the Chinese application has spread about questioning the prices of the company's advanced and expensive chipsets.

How can markets react to Nvidia Earnings Report?

If the company is able to achieve or exceed the expected revenues as it was accustomed to achieving during 16 of the previous 18 quarters, the stock is expected to witness an upward movement, as many sources, including UBS, expected the company’s stock to rise to $175 per share.

However, this optimism may be limited by the company's statement about its potential performance in 2026, or any disappointing signs about sales, any problems related to supply chains, or fears that global demand will be affected by US tariffs.

This means that the good positive performance of the Nvidia's stock may be a short-term performance due to optimism about revenues if they achieve or exceed what is expected, but the volatility of the Nvidia's stock forecast in the medium and long term will depend on developments in both the economic and political scene.