Key Points
On Thursday, Nvidia (NASDAQ: NVDA) reported fiscal fourth-quarter revenues of $68.1 billion, exceeding its guidance of approximately $65 billion and marking a 73% year-over-year growth. However, despite nearly doubling its earnings per share to $1.76, shares fell, indicating investor concerns about the potential peak of the AI investment cycle and the stock’s high valuation.
The company’s data center revenue surged 75% year-over-year, reaching $62.3 billion. Total revenue for the fiscal year was $215.9 billion, reflecting a 65% increase compared to the previous year. Despite robust results, sequential growth in the data center segment showed signs of slowing, growing only 22% in fiscal Q4, down from 25% in Q3.
Buckling under pressures of market valuation, Nvidia’s share repurchases diminished to below $4 billion in fiscal Q4 from $7.8 billion a year prior. Given these performance metrics, analysts caution investors about entering the stock at its current levels.
