"Nvidia CEO Huang Takes Center Stage But Analysts Wait For This Cue; Is Nvidia A Sell Now?"

Nvidia's CEO, Jensen Huang, has been making waves with his bold statements about the future of AI and the company's groundbreaking advancements. But while Huang's visionary leadership has investors excited, analysts are waiting for a key indicator before making their move. So, is Nvidia a sell now, or is there still room for growth?



First, let's look at the numbers. Nvidia reported revenue for the fourth quarter ended January 26, 2025, of $39.3 billion, up 12% from the previous quarter and up 78% from a year ago. For fiscal 2025, revenue was $130.5 billion, up 114% from a year ago. These are impressive figures, but what really catches the eye is the earnings per share (EPS). GAAP earnings per diluted share for the quarter was $0.89, up 14% from the previous quarter and up 82% from a year ago. Non-GAAP earnings per diluted share was $0.89, up 10% from the previous quarter and up 71% from a year ago. For fiscal 2025, GAAP earnings per diluted share was $2.94, up 147% from a year ago, and non-GAAP earnings per diluted share was $2.99, up 130% from a year ago.

These financial metrics paint a picture of a company that is not only growing but thriving. But what about the future? Nvidia’s outlook for the first quarter of fiscal 2026 includes expected revenue of $43.0 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 70.6% and 71.0%, respectively, plus or minus 50 basis points. GAAP and non-GAAP operating expenses are expected to be approximately $5.2 billion and $3.6 billion, respectively. This outlook provides a forward-looking view of the company's expected performance and growth potential.

One of the key drivers of Nvidia's growth is its partnerships with major cloud service providers and industry leaders. Nvidia has announced that cloud service providers AWS, CoreWeave, Google Cloud Platform (GCP), Microsoft Azure, and Oracle Cloud Infrastructure (OCI) are bringing NVIDIA® GB200 systems to cloud regions around the world to meet surging customer demand for AI. This partnership ensures that Nvidia's AI technologies are accessible to a wide range of customers, from startups to large enterprises, thereby expanding Nvidia's market reach and revenue streams.

Additionally, Nvidia has partnered with AWS to make the NVIDIA DGX™ Cloud AI computing platform and NVIDIA NIM™ microservices available through AWS Marketplace. This collaboration allows customers to easily access and deploy Nvidia's AI solutions, further driving adoption and revenue growth. The integration of NVIDIA Spectrum-X™ into Cisco's networking portfolio is another example of how Nvidia is helping enterprises build AI infrastructure, which is crucial for data center operations.

But while these partnerships are impressive, analysts are waiting for a key indicator before making their move. They want to see how Nvidia's AI advancements will translate into long-term growth and profitability. Huang's visionary leadership and strategic vision for Nvidia, particularly his emphasis on AI advancements, have significantly influenced investor confidence and stock performance in the long term. Huang's vision is evident in his statements about the demand for Blackwell and the scaling laws of AI, which have driven Nvidia's revenue and earnings growth.

In conclusion, while Nvidia's financial metrics and partnerships are impressive, analysts are waiting for a key indicator before making their move. They want to see how Nvidia's AI advancements will translate into long-term growth and profitability. Huang's visionary leadership and strategic vision for Nvidia, particularly his emphasis on AI advancements, have significantly influenced investor confidence and stock performance in the long term. But until we see how these advancements will translate into long-term growth and profitability, it may be too early to say whether Nvidia is a sell now or not.