Every Nvidia investor should keep an eye on this number

There's one number to watch when Nvidia reports its fiscal 2025 fourth-quarter earnings on February 26.

| More on:
A man pointing a remote towards a TV whilst covering his eyes

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Artificial intelligence (AI) leader Nvidia (NASDAQ: NVDA) had a strong 2024. During the year, analysts debated how high its data centre revenue could grow as it rolled out new products. Hyperscaler customers kept increasing capital spending to build out data centre compute power. But things turned on a dime in January 2025 when Chinese hedge fund-owned DeepSeek dropped an AI bombshell regarding resources needed to do AI well.

Rather than wondering how Nvidia's latest AI chip sales were going, some investors cared more about how to invest in DeepSeek and its claims that it created a high-performing large language model (LLM) with just $6 million in capital. The news led to an 11% decline in Nvidia stock thus far in 2025. But questions remain about DeepSeek and its claims, and investors would be smart to focus on what Nvidia says in its next earnings report (due on February 26).

Data centres and more

Before the DeepSeek news, all eyes were on Nvidia's unprecedented revenue growth -- specifically, in its data centre segment. The unsustainable rate of growth was slowing, though, and Nvidia's share price had already rocketed higher as those sales soared.

If spending on generative AI infrastructure comes to a screeching halt, as some have surmised from the DeepSeek news, the quarter-over-quarter growth in Nvidia's data centre revenue should quickly reverse. As seen below, it appeared to begin stabilising at a mid-teens growth rate in the last quarter.

Quarter-Over-Quarter Data Centre Revenue Growth
Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
141% 41% 27% 23% 16% 17%

Source: Nvidia. Note: Fiscal 2025's Q3 ended Oct. 27, 2024.

That's the number I'll continue to watch to see if Nvidia's share price can recoup recent losses and more -- at least in the short term. Nvidia also has other irons in the fire for the long term.

line graph showing quarterly revenue from Nvidia's auto and robotics segment.

Data source: Nvidia. Chart by author.

The company's auto and robotics segment will be the next area to watch. That revenue pales in comparison to the data centre but could be the next impactful growth catalyst for Nvidia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Howard Smith has positions in Nvidia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
International Stock News

Better artificial intelligence (AI) stock: Nvidia vs. Palantir Technologies

AI is transforming how businesses, governments, and society operate.

Read more »

two older men wearing colourful tropical patterned shirts and hats like tourists puzzle over a map one is holding while he other holds up a hand as if indicating he doesn't know where they are going.
International Stock News

Tesla stock is down 11% in 2025: Is it a long-term buy?

Tesla missed analyst expectations when it reported Q4 2024 financial results.

Read more »

A person leans over to whisper a secret to a colleague during a meeting.
International Stock News

Nvidia's insiders are speaking volumes with their stock trading activity — but are you listening?

Nvidia's insiders have made a statement!

Read more »

A man wearing a suit and holding an EV charger gives the thumbs up.
International Stock News

Why Tesla shares just popped

Tesla stock was gaining ground today thanks to political catalysts.

Read more »

senior lady holding her necklace and looking surprised
International Stock News

Nvidia stock is doing something it's only done twice before in the past 4 years. History says this will happen next

Nvidia stock soared 171% last year, but momentum has taken a pause in recent days.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
International Stock News

Billionaire Bill Ackman just bought $2.3 billion worth of this incredible US growth stock. Should you buy?

He praised the management of this market leader with a big competitive advantage.

Read more »

a small child holds his chin with his head on the side in a serious thinking pose against a background of graphic question marks and a yellow lightbulb.
International Stock News

Should you buy Nvidia stock before February 26? History has a clear answer

We'll learn a lot when Nvidia reports fourth-quarter and full-year 2024 earnings.

Read more »

a wide-mouthed man looks scared as he grips the wheel of a car while driving in a murky environment.
International Stock News

Why Tesla stock just continued its freefall

Investors see the Elon Musk-led bid for OpenAI as yet another distraction for Tesla's CEO.

Read more »