Nvidia(US:NVDA) Soochow Securities·2025-03-05 03:59Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [1][10]. Core Insights - The company reported strong financial results for FY2025, with total revenue reaching $130.5 billion, a year-on-year increase of 114.2%, and net profit of $72.9 billion, up 144.9% year-on-year [2][10]. - Demand from cloud service providers (CSPs) remains robust, with data center revenue for Q4 2025 at $35.58 billion, a 16% increase quarter-on-quarter and a 142% increase year-on-year [3][10]. - The company has introduced new products, including the B series, which generated $11 billion in revenue for Q4 2025, exceeding expectations [3][4]. Financial Performance - For FY2025, the company achieved total revenue of $130.5 billion and net profit of $72.9 billion, with an EPS of $2.99 [1][10]. - The report forecasts continued growth, with projected revenues of $209.2 billion for FY2026 and $260.3 billion for FY2027, alongside net profits of $114.1 billion and $143.1 billion respectively [1][10]. - The company's P/E ratio is projected to decrease from 38.19 in FY2025 to 15.61 by FY2028, indicating improving valuation metrics over time [1][10]. Market Position and Strategy - The company is expected to benefit from ongoing capital expenditures in the cloud sector, with major cloud providers increasing their spending significantly [3][10]. - New collaborations in the automotive sector with companies like Toyota and Hyundai are set to enhance the company's market presence and product offerings [4][10]. - The introduction of the Blackwell architecture is anticipated to improve product performance and profitability in the coming quarters [5][10].