Nvidia Q4 Revenue Soars 73%, Data-Center Margins Hit 75%, Price Targets Raised
Nvidia’s Q4 revenue rose 73.2% year-on-year to $68.1B, with data-center sales up 75.1% and a 75.2% gross margin, prompting price-target boosts to $235.55 (32% upside) and $314.42 (77% upside). Analysts project Nvidia will secure 40–50% of the $700B AI infrastructure market.
1. Q4 Financial Performance
Nvidia reported Q4 revenue of $68.1 billion, up 73.2% year-on-year, driven by a 75.1% increase in data-center sales and a record 75.2% gross margin, reflecting robust demand for AI GPUs.
2. Price Target Increases
Following the strong results, analysts raised the base-case price target to $235.55 (32% upside) and the bull-case to $314.42 (77% upside), citing higher EBITDA and free cash flow forecasts.
3. AI Infrastructure Market Share
Nvidia is expected to capture 40–50% of the roughly $700 billion AI infrastructure market as its GPUs underpin major cloud services and enterprise AI deployments.
4. Escalating AI Spending Trends
Startups such as Palihapitiya’s 8090 report AI costs have more than tripled since November, with annual expenses approaching $10 million for AWS inference and token-based tools, highlighting surging demand for Nvidia hardware.