Earnings Report Shows Nvidia Still Wearing The Crown

Nvidia just dropped its latest earnings report, and honestly, it was a bit of a monster. The company’s fiscal fourth-quarter results were announced on Wednesday, and they absolutely smashed what the experts over on Wall Street were expecting. It was driven largely by a mind-boggling 75% revenue growth in its core data center business. The stock initially got a nice little bump in extended trading, though some of those gains were pared back by the time the dust settled.

Data Center Cash Gushes Faster Than Ever

Was there any doubt that the king of AI chips would deliver? The numbers were laid out nice and clear for everyone to see. Earnings per share, adjusted, came in at $1.62, beating the $1.53 estimate that analysts polled by LSEG were looking for. Revenue hit a whopping $68.13 billion, soaring past the $66.21 billion projection. It’s being seen as just another day at the office for the tech titan.

Total revenue for the quarter climbed a staggering 73% from the $39.3 billion reported a year earlier. It’s gotten to the point where over 91% of all company sales are now funnelled through its data center unit, which is where those coveted artificial intelligence chips live and breathe. Data center revenue alone was reported at $62.3 billion for the quarter, comfortably ahead of the $60.69 billion expectation from StreetAccount.

China Revenue: Nvidia Isn’t Counting On It

Could the numbers have been any more impressive? Net income was almost doubled, hitting $43 billion, or $1.76 a share. That’s a massive leap from the $22.1 billion, or 89 cents per share, seen in the same quarter the previous year. The guidance provided for the future was also better than many had anticipated.

It was said that revenue for the fiscal first quarter is expected to be around $78 billion, plus or minus 2%. Analysts were only projecting $72.6 billion, so Nvidia is clearly feeling confident. It was noted in the forecast, however, that data center revenue from China isn’t really being counted on right now. Is it any wonder the stock is outperforming all its megacap pals this year?

AI King Adds Another Zero To Bank Balance

Nvidia continues to be the main beneficiary of the whole AI boom, and that story isn’t changing anytime soon. As of Wednesday’s market close, the shares are actually up 5% in 2026, which is pretty good considering the Nasdaq is down 0.4%. The only other member of the trillion-dollar club to show any gains this year is Apple, and they’re up less than 1%. It’s a good time to be in the chip business.

What were the big spenders up to? Wall Street got a pretty good preview of what was coming from Nvidia when the four major hyperscalers—Alphabet, Amazon, Meta, and Microsoft—reported their own quarterly results a few weeks back. By looking at their forecasts for capital expenditures, combined with analyst estimates, it’s believed that total capex for the year could approach a cool $700 billion. Everyone is just building out their AI infrastructure as fast as they can.

Nvidia Links Its Way To Another Billion

In its own CFO commentary, it was confirmed that hyperscalers remained the largest customer category, accounting for just over 50% of that data center revenue. Why are networking parts suddenly a huge deal? Within that data center business, Nvidia reported a massive $10.98 billion in sales for its networking components, which are essential for connecting hundreds of graphics processing units together.

Those sales were up a jaw-dropping 263% year over year. This reflects a very strong adoption of the company’s NVLink networking technology, as well as its Spectrum-X Ethernet switches, with new deals being inked with giants like Meta. Meanwhile, the gaming unit, which used to be the company’s bread and butter, recorded revenue growth of 47% from a year ago to $3.7 billion, though it did fall 13% from the previous quarter.

NVIDIA Warns Of Gaming GPU Drought Ahead

There’s speculation that a new gaming GPU might be skipped this year, as memory constraints are forcing chipmakers to prioritize those more lucrative AI processors. Is a global shortage causing a headache? Memory has definitely been an area of potential concern for investors, given the worldwide shortage. It was explained by finance chief Colette Kress that supply constraints are expected to be a headwind for the gaming business in the first quarter of fiscal 2027 and beyond.

But the focus is clearly elsewhere. Excitement has been building for the upcoming release of the next-generation Vera Rubin rack-scale systems, the fancy successor to Grace Blackwell, which is slated for later this year. Kress mentioned on Wednesday’s call that the first Vera Rubin samples were shipped to customers earlier this week, and they are on track to commence production shipments in the second half of the year. It’s said to deliver 10 times more performance per watt, which is crucial as data centers everywhere face major power constraints.

The Great GPU Migration Has Officially Begun

How is Nvidia handling its supply chain these days? The company said it’s working hard to expand its manufacturing footprint beyond Asia, where it is heavily concentrated, and into the U.S. and Latin America. Blackwell GPUs are now being made at Taiwan Semiconductor Manufacturing Co.’s new chip fabrication plants in Arizona, and some of its rack-scale systems are being assembled at a large new Foxconn plant in Mexico.

This was all detailed in a financial filing, where it was stated that these moves are expected to strengthen the supply chain, add some much-needed resiliency and redundancy, and meet that ever-growing demand for AI infrastructure. What about the smaller parts of the business? In the automotive sector, which includes chips for cars and robots, Nvidia reported sales of $604 million for the quarter. That was only up 6% from a year earlier and actually fell below analysts’ expectations of $654.8 million.

Chip Chip Hooray: NVIDIA’s Earnings Blast Off

The professional visualization business, however, had a much better time of it. Revenue was reported at $1.32 billion for the quarter, up a massive 159% year over year and way ahead of the $755.4 million that was expected. The company has also been pouring money into large AI labs and other industry players, including taking a pretty substantial stake in chipmaker Intel.

In its annual filing, it was disclosed that $17.5 billion was invested in private companies and infrastructure funds during the year, primarily to support early-stage startups. Will that big partnership with OpenAI ever get over the line? It’s a question on a lot of minds. CEO Jensen Huang told analysts that the company continues to work with OpenAI toward a partnership agreement and believes they are close.

The two companies announced a massive $100 billion deal back in September, but that agreement has yet to be finalized. In the annual filing, Nvidia reiterated that there is no assurance that a transaction will be completed, so everyone is just waiting to see what happens next. It’s a pretty wild ride for a company that started out making graphics for video games.