💥 Nvidia Just Crushed Earnings — And the AI Boom Is Far From Over

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Hi Fellow Investors,

Nvidia (NASDAQ: NVDA) just delivered a fourth-quarter report that erased doubts about an AI slowdown.

Revenue accelerated rather than stalled, defying cautious expectations.

CEO Jensen Huang made it clear that enterprise AI adoption is only just beginning.

Key Points:

• Fourth-quarter revenue surged 73% year over year to a record $68 billion.

• Data center revenue jumped 75%, reinforcing AI infrastructure momentum.

• Guidance for $78 billion next quarter suggests growth is accelerating, not slowing.

Blowout Quarter Confirms AI Demand Remains Explosive

For fiscal 2026’s fourth quarter, Nvidia reported record revenue of $68 billion.

That marked a 73% year-over-year increase and 20% sequential growth.

Adjusted earnings per share climbed 82% to $1.62.

Both revenue and EPS comfortably exceeded analyst expectations.

Gross margin reached an impressive 75%, underscoring pricing power.

The results decisively countered fears of a near-term demand plateau.

Data Center Dominance Expands Further

The data center segment generated $62.3 billion in revenue.

That represented 75% year-over-year growth and 22% sequential expansion.

This segment now dwarfs Nvidia’s once-dominant gaming business.

Gaming revenue still rose 47% year over year, but AI infrastructure remains the primary growth engine.

Supply constraints are increasingly being allocated toward AI demand rather than consumer GPUs.

Enterprise adoption of AI agents appears to be accelerating rapidly.

Guidance Suggests Even Faster Growth Ahead

Nvidia forecast $78 billion in revenue for the upcoming quarter.

That implies 77% year-over-year growth — faster than the just-reported quarter.

Gross margin is expected to remain near 75%, signaling sustained operating leverage.

Management emphasized that next-generation processors like Grace Blackwell and Vera Rubin will extend Nvidia’s leadership.

Exponential compute demand and enterprise AI investment continue to expand the addressable market.

At less than 25 times forward earnings, valuation appears restrained relative to growth velocity.

Strengths

• Market-leading GPU dominance with over 90% share in AI acceleration.

• 75% gross margin reflects unmatched pricing power and software ecosystem advantages.

• Accelerating guidance suggests sustained demand momentum into fiscal 2027.

Weaknesses

• Heavy reliance on hyperscaler and enterprise capital expenditure cycles.

• Supply constraints could limit near-term gaming and non-AI revenue streams.

• Valuation remains sensitive to any unexpected AI spending slowdown.

Potential

• Next-generation processors may further widen Nvidia’s performance gap.

• Enterprise AI adoption could unlock entirely new workload categories.

• Continued margin stability near 75% could drive outsized earnings compounding.

Conclusion

Nvidia’s latest report reinforces its position as the clear leader in AI infrastructure.

Accelerating revenue and strong forward guidance suggest momentum remains intact.

For long-term investors, the AI growth runway appears far from exhausted.

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