Nvidia (NVDA) just released its latest earnings report, and the numbers are huge.
The company pulled in $39.3 billion in revenue for the last quarter of 2025 — a staggering 78% jump from the same period last year.
Nvidia continues to prove why it leads the AI technology space, but beyond the impressive numbers, there are key market trends that traders need to watch.
Let’s dive in on what to expect next…
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Nvidia’s Explosive Growth in AI
The biggest boost came from Nvidia’s data center business, which generated $35.6 billion in revenue — up 93% from last year. A major driver of this growth was the launch of Nvidia’s Blackwell AI processor, which brought in $11 billion alone, making it the fastest-selling product in company history.
Despite these gains, Nvidia’s profit margins dipped slightly to 73%, down from 76% last year due to higher production costs.
However, the company expects margins to stabilize as sales continue to rise.
Even with strong earnings, Nvidia’s stock didn’t skyrocket immediately. It initially dipped in after-hours trading but later recovered, closing at approximately $131.28 per share, marking a 3.7% increase in after hours trading.
This suggests that while investors acknowledge Nvidia’s dominance, they remain cautious about competition from companies like DeepSeek in China and broader global risks.
Big Money Moves in Nvidia’s Options Market
Options trading surrounding Nvidia surged before the earnings report.
Many investors bought call options at strike prices of $130, $135, and $145, all expiring on February 28, 2025. The largest trade was a $1.8 million position on $130 calls, signaling bullish sentiment.
However, some traders were hedging against a potential decline.
Notable put option trades included a $573,000 position on May 16 $130 puts and a $394,000 trade on February 28 $128 puts.
This split positioning suggests traders were expecting some volatility around the earnings event today, and rightfully so.
Where Does Nvidia’s Stock Go From Here?
Looking at the stock chart, Nvidia remains in a broad upward trend.
Strong support sits around $120-$125, meaning the stock could find buying interest if it dips to this range. On the flip side, resistance is around $150-$155, where the stock might struggle to push higher.
If Nvidia breaks above $155, a rally toward $170 could be next. However, a drop below $120 could signal a deeper pullback.
Right now, Nvidia is in a consolidation phase.
If the stock holds above $130, there’s a good chance it could climb toward $140-$145. But if bearish momentum picks up and put options continue increasing, a short-term drop to $120 could be on the horizon before the next move up.
The Big Picture: Nvidia is Still a Leader, But Risk Management is Key
Nvidia’s latest earnings confirm that AI is the future, and the company remains at the forefront. However, despite outstanding performance, the market isn’t blindly jumping in.
With mixed signals in the options market and a critical price range ahead, traders should proceed with caution.
For investors, the best strategy is to monitor key price levels and follow institutional money.
If Nvidia maintains strength above $130 and call option volume remains high, the stock could continue climbing. But if support breaks and bearish positioning grows, a short-term dip could happen before another move higher.
No matter what, Nvidia remains one of the most exciting stocks in the market.
Whether you’re trading short-term or investing in AI for the long haul, NVDA deserves a place on your watchlist.
Trade Smart,
S.E.A.L. Alpha Team