Nvidia's latest earnings call showcased a remarkable 78% revenue growth year-over-year, reaching $39.33 billion. Although this surpassed estimates, it did not fully meet the high expectations of Wall Street. CEO Jensen Huang addressed the competitive landscape influenced by Chinese startup DeepSeek's lower-cost AI model affecting chip demand. Profit margins remained a concern due to increased production costs of the next-gen Blackwell GPUs, with forecasts indicating they wouldn't recover until later in the year. Declining growth speed and saturation of capital expenditure from top cloud clients raised further apprehensions.
Nvidia reported a 78% year-over-year revenue growth of $39.33 billion, beating estimates but falling short of Wall Street's high expectations.
CEO Jensen Huang highlighted changing trends in AI and the impact of competition from lower-cost AI models on Nvidia's future chip demand.
Despite strong quarterly results, Nvidia’s profit margins weakened due to increased production costs for its next-gen Blackwell GPUs.
Investor concerns grew over potential slowing growth and nearing capital expenditure peaks from top cloud customers in the AI chip market.
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