Nvidia's Q4 2025: Navigating Contradictions in Blackwell Production, Margins, and Market Demand

These are the key contradictions discussed in Nvidia's latest 2025 Q4 earnings call, specifically including: Blackwell production and supply chain constraints, gross margin expectations, and issues with product roadmap execution and supply chain:



Record Revenue and Growth:
- NVIDIA Corp reported revenue of $39.3 billion for Q4 2025, up 12% sequentially and 78% year-on-year, exceeding their outlook of $37.5 billion.
- The growth was driven by strong demand for data center products and accelerated AI development.

Data Center Revenue and AI Infrastructure:
- Data center revenue for fiscal 2025 was $115.2 billion, more than doubling from the prior year, with Q4 revenue reaching $35.6 billion.
- This was due to the commencing Blackwell ramp and continued growth of Hopper 200, supported by strong demand for AI infrastructure and software.

Blackwell Product Ramp and Impact:
- The Blackwell product ramp was the fastest in NVIDIA's history, delivering $11 billion of revenue in Q4 to meet strong demand.
- The rapid ramp-up was driven by the need to scale infrastructure for training the next generation of AI models and the demand from large CSPs.

Inference and AI Demand:
- NVIDIA's inference demand is accelerating due to new reasoning models like OpenAI’s o3, DeepSeek-R1, and Grok-3, requiring 100 times more compute per task.
- The Blackwell architecture, with its NVLink domain, enhances reasoning AI models and inference capabilities, boosting performance and reducing costs.