NVIDIA carries extraordinarily high growth expectations, with quarterly revenue rising 69% to $44 billion and a forecast of $45 billion next quarter. Management warned that the quarterly figure could vary about 2% depending on sales of the H20 chip to China, and the U.S. notified NVIDIA on April 9, 2025 that a license is required for H20 exports to China. Investor concern centers on softer AI momentum — evidenced by Meta's AI hiring freeze and OpenAI CEO comments — producing short-term stock volatility despite a 1,300% five-year gain and a $4.34 trillion market cap.
It is hard to imagine a company in which the stock will crater if its quarterly revenue is up less than 70% year over year. In the most recently reported quarter, NVIDIA's ( NASDAQ: NVDA) revenue rose 69% to $44 billion. It is forecast that the revenue in the upcoming quarter will be $45 billion. The number could be affected by 2% up or down, management said, depending on sales of its H20 chip to China.
The primary investor worry is that AI expectations appear to be falling, and that could affect NVIDIA's top line. Meta recently said it would freeze hiring in its AI business. Granted, it has spent billions building talent capacity. AI stocks were hit hard recently when OpenAI CEO Sam Altman called the AI sector a bumble. He said investors were "overexcited" about AI prospects. NVIDIA's stock dropped from $182 to $174 in two days.
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