CEO Jensen Huang Just Uttered 8 Words That Every Nvidia Investor Should Hear

Core Viewpoint - Nvidia continues to thrive as a leader in the AI revolution, reporting record financial results that alleviate investor concerns about competition and demand for its products [1][3][4]. Financial Performance - Nvidia generated record revenue of $39.3 billion for fiscal Q4 2025, marking a 78% year-over-year increase and a 12% sequential rise, surpassing analyst expectations of $38.16 billion [4]. - Adjusted earnings per share (EPS) reached $0.89, a 71% increase compared to the previous year, exceeding the consensus estimate of $0.85 [4]. - Data center revenue, which includes chips for cloud computing and AI, surged 93% year-over-year to $35.6 billion, driven by strong AI demand [5]. - The company's cash and marketable securities grew to $43.2 billion, a 66% increase, with operating cash flow rising 44% to $16.6 billion [6]. Market Position and Future Outlook - CEO Jensen Huang addressed concerns regarding competition from DeepSeek, stating that such innovations would actually increase demand for Nvidia's processors [7]. - Huang emphasized that future reasoning models will require significantly more computational power, suggesting a positive outlook for Nvidia's AI chip demand [8]. - Nvidia is guiding for record first-quarter revenue of $43 billion, representing a 65% year-over-year growth, which exceeds Wall Street's expectations [9]. - The generative AI market is projected to have an economic impact of $2.6 trillion to $4.4 trillion in the coming years, positioning Nvidia favorably to capitalize on this trend [10]. Valuation - Despite significant growth, Nvidia's stock is considered attractively priced at approximately 28 times next year's expected earnings, with expectations of over 50% growth in revenue and EPS for fiscal 2026 [11].