Semiconductor giant Nvidia published its Q4 FY 2025 earnings report on February 26 after market close. Nvidia stock (NASDAQ: NVDA) closed at $131.28 before the release.
Although NVDA shares opened at $134.94 on the following day, they subsequently dropped to a price of $120.84 by press time on February 28, bringing weekly losses up to 10.28%.
The chipmaker reported earnings per share (EPS) of $0.89 and revenues totaling $39.33 billion — both figures came in above analyst estimates. However, gross margins dropped to 73.5% from 75% last quarter. In addition, the company’s guidance sees margins coming in at 71% next quarter.
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As impressive as the double beat was, the impact of DeepSeek on the wider artificial intelligence (AI) market and the headwinds presented by tightening export controls and a brewing trading war do present potential risks going forward.
Despite the drop, there are several significant silver linings at play. Most notably, data center revenue increased by 93% year-over-year (YoY). To boot, per chief executive officer (CEO) Jensen Huang, demand for the company’s Blackwell chips remains exceptional.
Since the release of the report, several major Wall Street firms, including Morgan Stanley, JPMorgan, UBS, and Bernstein, have reaffirmed ‘Buy’ ratings. Let’s take a closer look at the big picture.
Analysts maintain bullish outlook on Nvidia stock
Unsurprisingly, as one of the best-performing stocks as of late, NVDA has attracted quite a bit of attention from Wall Street researchers. At present, 41 analysts track Nvidia stock and issue ratings for it. A vast majority — 38, to be exact, rate it a ‘Buy’, while only 3 deem it a ‘Hold’. No analysts have given the stock a ‘Sell’ rating.
The average price target for Nvidia shares sits at $178.66, which equates to a 47.84% upside from current prices. The Street-high forecasts of $220, set by Tigress Capital and Rosenblatt Securities, would correspond to an 82.05% rally.
Notably, even the lowest price target, at $135, still implies an 11.71% upside from the current price of Nvidia stock.
Once all is said and done, despite the modest worries put forth by analysts, not much has changed in their outlook. The average 12-month price forecast for the semiconductor company is surprisingly stable — having increased by just $1.10 in the last 30 days.
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