Nvidia Data Center Revenue Jumps 75% in Q4, Stock Drops 5.5% on Soft Q1 Outlook
Nvidia’s fourth-quarter revenue surged 73% sequentially and 20% year-over-year to surpass estimates, with data center revenue climbing 75% and gross margin expanding to 75%. However, a first-quarter sales outlook that fell short of investor expectations sent shares down 5.5%, triggering broader AI-sector profit-taking.
1. Fourth-Quarter Financial Highlights
Nvidia reported fourth-quarter revenue growth of 73% sequentially and 20% year-over-year, driven by a 75% jump in data center sales and gross margin expansion to 75%, all metrics exceeding consensus forecasts.
2. Market Reaction and Sector Impact
Despite topping estimates, Nvidia’s shares plunged 5.5%, the largest one-day loss in ten months, as investors engaged in profit-taking across AI-focused names and major indices reflected the shift.
3. First-Quarter Guidance and Investor Concerns
The company’s first-quarter sales outlook came in below market hopes, heightening doubts over the durability of surging AI investment and spurring calls for clearer forward guidance.