Why the whole world is anxiously awaiting the Nvidia figures
Nvidia's quarterly figures are coming out. Will the company continue to dominate, or will the competition gain ground?
Published on February 26, 2025
As editor-in-chief, Aafke oversees all content and events but loves writing herself. She makes complex topics accessible and tells the stories behind technology.
The global AI sector is anxiously awaiting Nvidia's upcoming quarterly figures, which will be published later today. Analysts expect Nvidia's revenue to rise to a whopping $38 billion, an impressive 72% growth compared to last year. Nvidia's chips are indispensable for AI applications such as OpenAI's ChatGPT. Microsoft and Google are investing heavily in Nvidia's latest AI chips, Blackwell. While new competitors such as DeepSeek are emerging, Nvidia remains a strong player with its progressive GPU developments. Although there are concerns about the growth of AI infrastructure, Microsoft has indicated that it will continue to invest $80 billion by 2025. Nvidia's ability to exceed expectations, even in the face of rising production costs, makes their results a crucial indicator of the health of the AI industry. Will Nvidia amaze the market again, or will the competition be a more significant challenge?
Dominance in the AI chip market
Nvidia's influence on the AI sector is overwhelming. The company has acquired a dominant position in the market for advanced AI chips. This position is underlined by the impressive distribution of spending on their latest Blackwell chip: Microsoft accounts for approximately 35%, Google 32.2%, Oracle 7.4%, and Amazon 6.2%. This concentration of large tech companies that depend on Nvidia's technology illustrates the company's crucial role in AI infrastructure. Over the past two years, this has led to explosive growth, with Nvidia's market value increasing by 478% to over $3 trillion, periodically making it the most valuable American company.
Challenges and innovation
The rise of the Chinese company DeepSeek has recently caused unrest in the sector. This company claims to have developed an effective AI model with limited resources, which led to a temporary drop in the value of Nvidia shares. Nvidia's response to this challenge is announcing their new Rubin chip, built with 3-nanometer technology by TSMC. According to experts, this annual innovation cycle and its advanced software development will keep Nvidia years ahead of the competition.
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Crucial quarterly figures
The entire sector is eagerly awaiting the upcoming quarterly figures. Analysts expect sales of around $38 billion, an increase of 72% compared to last year. UBS is even more optimistic, with an expected figure of more than $42 billion. A crucial indicator is the gross margin, which was 75% in the previous quarter and is expected to fall slightly to 73%. These figures are important for Nvidia itself and are also seen as an indicator for the entire AI sector. Investment strategist Jacob Falkencrone of Saxo emphasizes that strong results are essential for maintaining momentum in the AI market.
Despite concerns about possible delays in the growth of AI infrastructure, large tech companies continue to invest substantially. Microsoft, for example, has confirmed that it is sticking to its plan to invest $80 billion in infrastructure by 2025. Nvidia's CEO Jensen Huang remains optimistic about the future of AI, stating that “generative AI is the most powerful technological development of our time.” With the announced doubling of production capacity for AI chips in 2026 and the promise to introduce a new generation of chips with 50% more computing power in 2025, Nvidia seems determined to maintain its leading position.