Nvidia has beat its income record again. Paradoxically, Wall Street does not seem to import much

The Fever continues to spur Nvidia in the stock market. The company led by Huang has presented again record results for your fourth fiscal quarter. And it has been making the rupture of records into a while.

Why is it important. This comes shortly after concerns about Deepseek’s impact and its efficiency in the market that dominates Nvidia. About the idea that less hardware and less power was necessary to continue advancing in AI. Which caused the huge hole in Nvidia bag.

The most prominent point of the results was the Awesome Blackwell startthe new chips architecture for Nvidia. Colette Kress, financial director of the company, explained that Blackwell generated 11,000 million dollars in income, exceeding all expectations and becoming “the fastest product launch in the history of our company.”

In figures. The data centers business, where technology is concentrated for AI, remains the main growth engine with 35.6 billion revenue in the quarter, 16% more than in the previous quarter and 93% more than in the same period of the previous year

For the full fiscal year, this segment reached 115.2 billion, more than double the previous year. The total revenue of the quarter reached 39.3 billion, 12% more than in the previous quarter and 78% higher intelligible.

Between the lines. Nvidia is changing her strategy to deal with competition. Jensen Huang emphasized The call with investors that are designing specific platforms for “reasoning AI”, a type of AI that requires up to 100 times more computing capacity than the “traditional” generative AI, which reinforces their most powerful need for hardware even against more efficient models.

• Reasoning models such as O3 of OpenAi, Deepseek R1 and Grok 3 They require much more intensive processing.
• Blackwell offers 25 times more yield for these models compared to the previous generation.
• Infrastructure demand for AI is promoting initial orders of Clusters of 100,000 Gpus or more.

And now what? Nvidia has already announced that he will present Blackwell’s successor, called Blackwell Ultra, in the second half of this year, maintaining his annual rhythm. Jensen Huang has confirmed that this transition will be simpler than Hopper’s Blackwellsince it will use the same system architecture.

The contrast. Despite the impressive results, Nvidia’s shares barely reacted in the market after the presentationa behavior very different from that seen in previous quarters.

The reason: investors perhaps see with caution the reduction in gross margins (from 75% to 73%) and the lowest percentage growth compared to previous quarters, although it remains extraordinary for a company that has established itself as the second most valuable in the world.

The big question. Will Nvidia be able to maintain your technological and financial domain against increasingly intense competition and that also threat from China?

It seems inevitable that, although Nvidia’s position will remain strong, a certain decrease in demand in favor of new competitors comes. And above all, as the huge investments made by companies in AI do not have a clear and lucrative return, something that seems quite feasible. Maybe it is time to readjust expectations.

Outstanding image | Nvidia

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