Is NVDA's Q4 2025 revenue growth sustainable?

NVIDIA's Q4 2025 revenue growth appears to be sustainable for the following reasons:

1. **Revenue Breakdown**: NVIDIA's revenue growth has been primarily driven by its Data Center segment, which now comprises 88% of its total revenue. This segment is fueled by the demand for AI infrastructure, which is expected to continue growing.
2. **Market Position**: NVIDIA has solidified its position as the undisputed leader in AI computing, with a 95% share of the AI accelerator market and 80%+ of the overall GPU market. Its proprietary CUDA ecosystem creates high customer lock-in, supporting a durable competitive moat.
3. **Strategic Moves**: NVIDIA's recent decision to manufacture AI supercomputers in the US is a strategic move to lessen its exposure to potential tariffs and to fuel domestic and international demand. This expansion aligns with the growing demand for AI applications and is expected to contribute to future revenue growth.
4. **Financial Performance**: Despite the growth deceleration signs, NVIDIA's total addressable market is expanding rapidly, with forecasts indicating the data center opportunity could hit $1 trillion by 2028 and $1.7 trillion by 2035. Its entry into CPUs adds an additional $35 billion in TAM, and the gaming GPU market is expected to grow at a 21% CAGR through 2028.
5. **Analyst Forecasts**: Wall Street analysts forecast a significant upside for NVIDIA shares, with an average one-year price target of $171.46, suggesting a potential upside of 52.42% from the current price. The consensus recommendation is an "Outperform," indicating positive sentiment amongst analysts.
6. **Innovation and Product Roadmap**: NVIDIA's dedication to research and development has led to breakthroughs in graphics rendering, AI algorithms, and computer vision. Its product roadmap includes an accelerated innovation cycle, aiming to bring new GPU architectures to market more quickly. This commitment to innovation is likely to sustain its growth trajectory.

In conclusion, NVIDIA's Q4 2025 revenue growth appears sustainable due to its dominant market position, strategic expansions, strong financial performance, positive analyst forecasts, and ongoing innovation in AI and computing technologies.