Nvidia Earnings Fail to Boost Semiconductor Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Should l Buy NVDA?
Source: Benzinga
- Nvidia Earnings Reaction: Nvidia reported fourth-quarter revenue of $68.13 billion, a 73% year-over-year increase that surpassed the Street's estimate of $66 billion, yet failed to excite investors, leading to a decline in semiconductor stocks.
- Strong Data Center Performance: The data center segment generated a record $62.3 billion in revenue, rising 75% year-over-year, indicating robust market demand, but concerns about AI profitability persist among investors.
- Increased Market Volatility: Rising oil prices and bond yields have heightened market volatility, with Nvidia shares dropping 5.5%, negatively impacting the entire semiconductor index and causing declines in other chipmakers like Broadcom and AMD.
- Cautious Future Outlook: Although Nvidia expects first-quarter revenue between $76.44 billion and $79.56 billion, exceeding the Street estimate of $71.96 billion, supply constraints may affect the gaming segment, raising investor concerns about future performance.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 182.650
Low
200.00
Averages
264.97
High
352.00
Current: 182.650
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia Stock Price Potential Analysis
- Significant Performance Growth: Nvidia achieved record revenue of $68 billion in Q4 of fiscal 2026, representing a 73% year-over-year increase, with earnings per share (EPS) soaring to $1.76, up 98%, demonstrating the strong demand driven by AI and solidifying its market leadership.
- Market Share Advantage: Nvidia holds a dominant 92% share in the data center GPU market, and with its leadership in AI and cloud computing, the company anticipates continued revenue growth, projecting first-quarter revenue of $78 billion, a 77% year-over-year increase, which will further enhance its competitive edge.
- Analyst Outlook: Tigress Financial analyst Ivan Feinseth reiterated a strong buy rating on Nvidia, raising the 12-month price target to $360, forecasting the company will generate $406 billion in revenue and $201 billion in operating profit over the next year, reflecting strong market confidence in its growth prospects.
- Investor Confidence Rebound: Despite concerns about an AI bubble shaking some investors, 90% of retail investors plan to maintain or increase their AI holdings, indicating long-term optimism for Nvidia, with the current stock price being relatively undervalued, presenting a buying opportunity for seasoned investors.
See More
Nvidia Stock Positioned for Potential Doubling
- Strong Market Demand: Nvidia's GPUs have become the primary hardware for training AI models, with revenue projected to grow by 70% to over $360 billion by fiscal 2027, indicating robust market demand and future growth potential in the AI sector.
- Profitability Surge: With a profit margin exceeding 50%, Nvidia is expected to become the most profitable company globally by year-end, surpassing Alphabet, showcasing its profitability and market leadership in a high-demand environment.
- Valuation Rebound Potential: Currently trading at a price-to-earnings ratio of about 22 times, significantly lower than the historical range of 40 to 50 times, if market sentiment improves, a return to a 45 times valuation could double the stock price, reflecting its reasonable valuation potential.
- Long-term Investment Confidence: Despite cautious market sentiment regarding the AI sector, hyperscalers are likely to continue investing in infrastructure, believing the risk of underinvestment is greater, suggesting that by 2026, market sentiment may recover, further driving Nvidia's stock price upward.
See More
Investment Opportunities Amid Market Decline
- Nvidia's Growth Potential: Despite Nvidia's market cap reaching $4.4 trillion, management anticipates a 77% revenue increase in the current fiscal Q1, indicating strong growth potential amid sustained AI demand, with a current stock price at just 21.9 times forward earnings, significantly below the broader market.
- Microsoft's Steady Performance: Microsoft achieved a 17% year-over-year growth in its latest quarter, with Azure's revenue soaring 39%, and despite a trailing P/E ratio below 26, the stock presents an attractive buying opportunity for investors looking to increase their holdings at this time.
- Challenges for The Trade Desk: The Trade Desk faces slowing growth and market share issues, yet reported a 14% year-over-year revenue increase in Q4, with management guiding for about 10% growth next quarter, reflecting resilience in its advertising technology platform, while trading at just 15 times forward earnings, indicating low market expectations for future growth.
- Long-term Investment Opportunities: Given the rapid growth in the advertising market, The Trade Desk's undervaluation presents a compelling opportunity for long-term investors, and alongside the strong performances of Microsoft and Nvidia, these stocks are expected to rebound, making them suitable for accumulation during market downturns.
See More
Comparing Growth Prospects of Palantir and Broadcom
- Palantir Revenue Surge: Palantir's revenue tripled from $1.5 billion in 2021 to $4.5 billion by 2025, reflecting robust demand in both government and commercial sectors, particularly driven by new contracts.
- Profitability Boost: In 2023, Palantir became profitable with net income soaring nearly eightfold to $1.6 billion over two years, indicating the success of its business model and increased market acceptance.
- Broadcom Market Edge: Broadcom achieved a 24% CAGR in revenue for fiscal 2025, with 58% of its revenue from semiconductor solutions and 42% from infrastructure software, showcasing its competitive strength in a diversified market.
- AI Chip Sales Growth: Broadcom's AI chip sales soared 65% to $20 billion in fiscal 2025, accounting for 31% of total revenue, with projections of $60-$90 billion in annualized revenue by fiscal 2027, highlighting its strong potential in the AI market.
See More
Market Outlook Analysis for Palantir and Broadcom
- Palantir's Growth Potential: Palantir's revenue is projected to grow from $1.5 billion in 2021 to $4.5 billion by 2025, with a CAGR of 49%, primarily driven by new government contracts and expansion in its commercial business, indicating strong performance in the AI market.
- Profitability Improvement: In 2023, Palantir became profitable with net income soaring nearly eightfold to $1.6 billion over two years, demonstrating the effectiveness of its business model and robust market demand.
- Broadcom's Market Positioning: Broadcom's revenue and adjusted EBITDA grew at CAGRs of 24% and 27% from 2021 to 2025, respectively, with its unique combination of semiconductor and infrastructure software providing a competitive edge in the market.
- AI Chip Sales Growth: Broadcom's AI chip sales surged 65% to $20 billion in 2025, accounting for 31% of its total revenue, with expectations to generate $60-$90 billion in annualized AI chip revenue by 2028, highlighting its strong growth potential in the AI sector.
See More
Palantir's Financial Performance Shows Significant Growth
- Significant Revenue Growth: Palantir's revenue tripled from $1.5 billion in 2021 to $4.5 billion in 2025, reflecting strong demand in both government and commercial sectors, particularly driven by new contracts.
- Profitability Improvement: In 2023, Palantir achieved profitability for the first time, with net income soaring nearly eightfold to $1.6 billion over two years, enhancing investor confidence and laying a foundation for future expansion.
- Future Growth Expectations: Analysts forecast that Palantir's revenue and EPS will grow at CAGRs of 49% and 53%, respectively, from 2025 to 2028, primarily benefiting from increased U.S. government contracts and the expansion of its AI platform.
- Valuation Warning: Despite Palantir's strong business performance, its current share price of $150 reflects a valuation of nearly 140 times forward earnings, prompting investors to consider waiting for a valuation correction before investing to mitigate overvaluation risks.
See More
Nvidia Stock Price Potential Analysis
- Significant Performance Growth: Nvidia achieved record revenue of $68 billion in Q4 of fiscal 2026, representing a 73% year-over-year increase, with earnings per share (EPS) soaring to $1.76, up 98%, demonstrating the strong demand driven by AI and solidifying its market leadership.
- Market Share Advantage: Nvidia holds a dominant 92% share in the data center GPU market, and with its leadership in AI and cloud computing, the company anticipates continued revenue growth, projecting first-quarter revenue of $78 billion, a 77% year-over-year increase, which will further enhance its competitive edge.
- Analyst Outlook: Tigress Financial analyst Ivan Feinseth reiterated a strong buy rating on Nvidia, raising the 12-month price target to $360, forecasting the company will generate $406 billion in revenue and $201 billion in operating profit over the next year, reflecting strong market confidence in its growth prospects.
- Investor Confidence Rebound: Despite concerns about an AI bubble shaking some investors, 90% of retail investors plan to maintain or increase their AI holdings, indicating long-term optimism for Nvidia, with the current stock price being relatively undervalued, presenting a buying opportunity for seasoned investors.
See More
Nvidia Stock Positioned for Potential Doubling
- Strong Market Demand: Nvidia's GPUs have become the primary hardware for training AI models, with revenue projected to grow by 70% to over $360 billion by fiscal 2027, indicating robust market demand and future growth potential in the AI sector.
- Profitability Surge: With a profit margin exceeding 50%, Nvidia is expected to become the most profitable company globally by year-end, surpassing Alphabet, showcasing its profitability and market leadership in a high-demand environment.
- Valuation Rebound Potential: Currently trading at a price-to-earnings ratio of about 22 times, significantly lower than the historical range of 40 to 50 times, if market sentiment improves, a return to a 45 times valuation could double the stock price, reflecting its reasonable valuation potential.
- Long-term Investment Confidence: Despite cautious market sentiment regarding the AI sector, hyperscalers are likely to continue investing in infrastructure, believing the risk of underinvestment is greater, suggesting that by 2026, market sentiment may recover, further driving Nvidia's stock price upward.
See More
Investment Opportunities Amid Market Decline
- Nvidia's Growth Potential: Despite Nvidia's market cap reaching $4.4 trillion, management anticipates a 77% revenue increase in the current fiscal Q1, indicating strong growth potential amid sustained AI demand, with a current stock price at just 21.9 times forward earnings, significantly below the broader market.
- Microsoft's Steady Performance: Microsoft achieved a 17% year-over-year growth in its latest quarter, with Azure's revenue soaring 39%, and despite a trailing P/E ratio below 26, the stock presents an attractive buying opportunity for investors looking to increase their holdings at this time.
- Challenges for The Trade Desk: The Trade Desk faces slowing growth and market share issues, yet reported a 14% year-over-year revenue increase in Q4, with management guiding for about 10% growth next quarter, reflecting resilience in its advertising technology platform, while trading at just 15 times forward earnings, indicating low market expectations for future growth.
- Long-term Investment Opportunities: Given the rapid growth in the advertising market, The Trade Desk's undervaluation presents a compelling opportunity for long-term investors, and alongside the strong performances of Microsoft and Nvidia, these stocks are expected to rebound, making them suitable for accumulation during market downturns.
See More
Comparing Growth Prospects of Palantir and Broadcom
- Palantir Revenue Surge: Palantir's revenue tripled from $1.5 billion in 2021 to $4.5 billion by 2025, reflecting robust demand in both government and commercial sectors, particularly driven by new contracts.
- Profitability Boost: In 2023, Palantir became profitable with net income soaring nearly eightfold to $1.6 billion over two years, indicating the success of its business model and increased market acceptance.
- Broadcom Market Edge: Broadcom achieved a 24% CAGR in revenue for fiscal 2025, with 58% of its revenue from semiconductor solutions and 42% from infrastructure software, showcasing its competitive strength in a diversified market.
- AI Chip Sales Growth: Broadcom's AI chip sales soared 65% to $20 billion in fiscal 2025, accounting for 31% of total revenue, with projections of $60-$90 billion in annualized revenue by fiscal 2027, highlighting its strong potential in the AI market.
See More
Market Outlook Analysis for Palantir and Broadcom
- Palantir's Growth Potential: Palantir's revenue is projected to grow from $1.5 billion in 2021 to $4.5 billion by 2025, with a CAGR of 49%, primarily driven by new government contracts and expansion in its commercial business, indicating strong performance in the AI market.
- Profitability Improvement: In 2023, Palantir became profitable with net income soaring nearly eightfold to $1.6 billion over two years, demonstrating the effectiveness of its business model and robust market demand.
- Broadcom's Market Positioning: Broadcom's revenue and adjusted EBITDA grew at CAGRs of 24% and 27% from 2021 to 2025, respectively, with its unique combination of semiconductor and infrastructure software providing a competitive edge in the market.
- AI Chip Sales Growth: Broadcom's AI chip sales surged 65% to $20 billion in 2025, accounting for 31% of its total revenue, with expectations to generate $60-$90 billion in annualized AI chip revenue by 2028, highlighting its strong growth potential in the AI sector.
See More
Palantir's Financial Performance Shows Significant Growth
- Significant Revenue Growth: Palantir's revenue tripled from $1.5 billion in 2021 to $4.5 billion in 2025, reflecting strong demand in both government and commercial sectors, particularly driven by new contracts.
- Profitability Improvement: In 2023, Palantir achieved profitability for the first time, with net income soaring nearly eightfold to $1.6 billion over two years, enhancing investor confidence and laying a foundation for future expansion.
- Future Growth Expectations: Analysts forecast that Palantir's revenue and EPS will grow at CAGRs of 49% and 53%, respectively, from 2025 to 2028, primarily benefiting from increased U.S. government contracts and the expansion of its AI platform.
- Valuation Warning: Despite Palantir's strong business performance, its current share price of $150 reflects a valuation of nearly 140 times forward earnings, prompting investors to consider waiting for a valuation correction before investing to mitigate overvaluation risks.
See More
