<div id="readability-page-1"><p>Artificial intelligence (AI) leader <strong>Nvidia</strong> <span>(NVDA<span> 2.41%</span>)</span> had a strong 2024. During the year, analysts debated how high its data center revenue could grow as it rolled out new products. Hyperscaler customers kept increasing capital spending to build out data center 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.</p>  <p>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 Feb. 26).</p> <h2>Data centers and more</h2> <p>Before the DeepSeek news, all eyes were on Nvidia's unprecedented revenue growth -- specifically, in its data center segment. The unsustainable rate of growth was slowing, though, and Nvidia's share price had already rocketed higher as those sales soared.</p> <p>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 center revenue should quickly reverse. As seen below, it appeared to begin stabilizing at a mid-teens growth rate in the last quarter.</p> <div><table> <tbody> <tr> <td colspan="6"><strong>Quarter-Over-Quarter Data Center Revenue Growth</strong></td> </tr> <tr> <td>Q2 2024</td> <td>Q3 2024</td> <td>Q4 2024</td> <td>Q1 2025</td> <td>Q2 2025</td> <td>Q3 2025</td> </tr> <tr> <td>141%</td> <td>41%</td> <td>27%</td> <td>23%</td> <td>16%</td> <td>17%</td> </tr> </tbody> </table></div> <p>Source: Nvidia. Note: Fiscal 2025's Q3 ended Oct. 27, 2024.</p> <p>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.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MDU3NjUvbnZpZGlhLWF1dG8tYW5kLXJvYm90aWNzLXF1YXJ0ZXJseS1yZXZlbnVlLnBuZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="456" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MDU3NjUvbnZpZGlhLWF1dG8tYW5kLXJvYm90aWNzLXF1YXJ0ZXJseS1yZXZlbnVlLnBuZyZ3PTcwMA"/></p><p>Data source: Nvidia. Chart by author.</p> </div> <p>The company's auto and robotics segment will be the next area to watch. That revenue pales in comparison to the data center but could be the next impactful growth catalyst for Nvidia.</p>                                                                                             </div>

NVDA

<p>Nvidia (NVDA) experienced a strong 2024, but an unexpected announcement from Chinese hedge fund DeepSeek in January 2025 led to an 11% decline in its stock. Investors are now questioning Nvidia's data center revenue growth, which had been impressive but is showing signs of slowing. The upcoming earnings report on February 26 will be crucial for investors. Additionally, Nvidia's auto and robotics segment may become a significant growth driver in the future.</p>

- Nvidia experienced strong growth in 2024, particularly in its data center revenue, driven by increased capital spending from hyperscaler customers.  
- However, in January 2025, news from DeepSeek about its low-cost AI model led to an 11% decline in Nvidia's stock, raising concerns about the sustainability of Nvidia's growth.  
- Investors are advised to focus on Nvidia's upcoming earnings report on February 26, as the company's future performance in data centers and its auto and robotics segment remains uncertain.

Every Nvidia Investor Should Keep an Eye on This Number