Nvidia Q4 Earnings Review: Losing On AI Inference
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Nvidia's Q4 earnings beat EPS and revenue estimates, but concerns over margin compression and high total cost of ownership for inference GPUs make the stock a strong sell. Despite impressive results, gross margins fell below expectations, and further declines are anticipated due to the Blackwell architecture ramp-up.
February 28, 2025 | 8:30 am
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Nvidia's Q4 earnings exceeded EPS and revenue estimates, but margin compression and high TCO for inference GPUs are significant concerns. Gross margins fell below expectations, and further declines are expected, making the stock a strong sell.
Nvidia's earnings beat expectations, but the market is concerned about margin compression and high TCO for inference GPUs. The anticipated further decline in margins due to the Blackwell architecture ramp-up could lead to P/E multiple compression, presenting downside risks for the stock.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100