Nvidia smashes earnings (again)

Welcome to AI Collision 💥,

In today’s collision between AI and our world:

• Nvidia dominates earnings (again)
• Make it make sense!
• An interview worth your 57 minutes

If that’s enough to get the tech giant ripping Wall St. a new one, read on…

AI Collision 💥

Last week was a challenge.

You only needed to check out our “Boomers & Busters” section to get the full brunt of it all.

It was so bad with AI stocks that we had to change the name to the “Busters & Busters” section.

It was nothing short of a bloodbath.

Conversely, a great buying opportunity. But it also felt like everything was hanging by a thread, teetering on the edge of destruction.

Except there was one thing that was going to save us all.

If you’ve read our work here at AI Collision long enough, you’ll know I love a good meme to illustrate a point and today is no different.

Because after the shenanigans of the market rout, there was one final hope for salvation… or absolute devastation…

And bless its cotton socks, Nvidia (NVDA) saved us all!

What exactly was it that saved us?

Well, how about the company just hand over fist making money from the insatiable global demand for AI?

Let’s take a look at how ridiculous Nvidia’s quarterly report is.

First up, for the fourth fiscal quarter of 2025 Nvidia posted record revenue of $39.3 billion. That’s a whopping 78% year-on-year rise. And what was driving that rise? You guessed it, AI data centres.

Nvidia’s data centre segment grew 93%, pulling in $35.6 billion. That’s Nvidia’s main business, but it shows just how fast things are moving.

Furthermore, earnings per share (EPS) was 89 cents which smashed Wall St. “expectation” and was an 82% jump over last year’s EPS.

Dominating earnings like that again? Surely the stock was raging higher in the next trading session…

Surely.

Well, no. Nvidia opened at $135 and traded down to $120 for the day, an 11% tumble.

It’s almost like clockwork now. Nvidia releases a killer earnings result, stock drops.

That’s fine – Nvidia is still absolutely dominating AI chips, and I really can’t see that changing all that soon.

There are some potential competitors. I’d say the closest competitor (sort of) is Cerebras Systems. It is currently private but may IPO this year. It’s got some nifty tech, but it’s still a far, far world away from the $3 trillion chip giant.

Interestingly, one of the things Nvidia made sure to highlight was the ramp-up of its new Blackwell AI chips. On the earnings call the company said,

We delivered $11 billion of Blackwell revenue to meet strong demand. This is the fastest product ramp in our company’s history, unprecedented in its speed and scale.

The earnings was also a chance for Jensen Huang (founder and CEO) to tease what’s coming up next. But mainly it was for him to tease the GTC 2025 event Nvidia is holding this month.

Last year’s GTC 2024 sent the AI market into a frenzy. This year it could very well do the same.

On the call Huang spoke about Blackwell Ultra (the next iteration of Nvidia’s Blackwell chips), Vera Rubin (the next generation platform after Blackwell) and then teased “really exciting new products to come…”

In short, he said come to GTC and we’ll show you our future. GTC 2025 starts in 12 days.

I would think Nvidia is going to drop some mind-blowing tech and AI-related future on us.

I would expect more on its “Project DIGITS”, the personal AI supercomputer teased at CES earlier this year. I would expect more on Drive (AI for self-driving cars), as well as more on the robotics and “multiverse” it’s developed called Nvidia Cosmos.

And no doubt Nvidia is keeping some things in the pocket to make GTC 2025 another market mover.

So while AI stocks might be down in the dumps over the last week or two, there’s certainly blue sky ahead. And I think that GTC 2025 is going to move the market exponentially more than GTC2024 did.

#AD

Trump Snub Opens New AI Window

The Trump administration refused to sign the Paris AI summit declaration. Britain didn’t sign it either. This US support is attracting big investments in Britain’s new “AI Railroad”. Amazon is in for £8 billion. Microsoft has a £2.5 billion stake. This could easily be the biggest financial opportunity in Britain today.

Capital at risk

Boomers & Busters 💰

AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).

Boom 📈

• Gorilla Technology (NASDAQ:GRRR) up 30%
• Oddity Tech (NASDAQ:ODD) up 5%
• Team Internet Group (LSE:TIG) up 2%

Bust 📉

• Appen (ASX:APX) down 51%
• Vicarious Surgical (NYSE:RBOT) down 31%
• Arm (NASDAQ:ARM) down 13%

From the hive mind 🧠

• This is a great interview with one of the world’s leading robotics pioneers. The work Figure robotics is doing is quite extraordinary. The section on the move away from OpenAI is interesting (and I’ll look deeper at that in the near future). But this is definitely worth the 57 minutes.
• AI’s “Oppenheimer moment“. Seems a little dramatic doesn’t it?
• Mobile World Congress (MWC) is a big deal for the mobile device industry. And you can bet this year (it’s currently on now) is going to be full of big announcements as to how AI will be in all our devices in the blink of an eye.

Artificial Polltelligence 🗳️

Weirdest AI image of the day

Middle management training seminar at SmugSoft

ChatGPT’s random quote of the day

Thanks for reading, and don’t forget to leave comments and questions below,

Sam Volkering

Editor-in-Chief

AI Collision