Nvidia Reports Strong Q4 Fiscal 2026 Results with AI Revenue Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Fool
- Revenue Surge: Nvidia's Q4 fiscal 2026 revenue skyrocketed 73% year-over-year to $68.1 billion, exceeding Wall Street's estimate of $66.2 billion, indicating strong demand for AI capabilities positively impacting the company's performance.
- Earnings Per Share Growth: Adjusted EPS soared 82% to $1.62, surpassing the analyst consensus estimate of $1.54, reflecting significant improvements in the company's cost control and profitability.
- Rapid Growth in Sovereign AI: Nvidia's sovereign AI revenue tripled year-over-year to over $30 billion in fiscal 2026, accounting for approximately 13.9% of total revenue, highlighting strong national investments in AI infrastructure, particularly among NATO countries.
- Promising AI Applications in Space: CEO Jensen Huang emphasized the economic potential of AI in space, with Nvidia already deploying its H100 chip in space, positioning the company to dominate this emerging market and drive long-term growth.
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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: 184.890
Low
200.00
Averages
264.97
High
352.00
Current: 184.890
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's AI Growth Continues to Surge Following Impressive Q4 Results
NVIDIA's Q4 Earnings Performance: NVIDIA's Q4 earnings report for fiscal 2026 shows strong revenue growth driven by AI, with a revenue of $68.3 billion, surpassing market expectations and indicating robust cash flow and investment potential.
Market Segments Growth: The company experienced significant growth across critical markets, particularly in data centers, automotive, and gaming, with data center revenue accounting for over 90% of total revenue and growing by 75% year-over-year.
Future Projections: Analysts project continued strong performance for NVIDIA, forecasting $78 billion in revenue for Q1 FY 2027, reflecting a 14.7% sequential increase and a 77% year-over-year growth, excluding China.
Investor Sentiment and Stock Outlook: Analysts maintain a bullish outlook on NVIDIA's stock, with a consensus target price suggesting significant upside potential, supported by strong cash flow and a healthy balance sheet, positioning the company well for future growth.
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Nvidia's Q4 Results Exceed Expectations Significantly
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- Data Center Revenue Surge: Data center revenue reached $62.13 billion, surpassing expectations of $60.36 billion, reflecting a surge in enterprise demand for AI computing, further solidifying Nvidia's leadership in the AI sector.
- Optimistic Outlook: The company anticipates revenue of $78 billion for the upcoming fiscal first quarter, excluding any revenue from China, showcasing confidence in global markets while also indicating a cautious stance towards the Chinese market.
- Dividend Announcement: Nvidia declared a quarterly dividend of $0.01 per share to be paid on April 1, enhancing investor confidence and demonstrating the company's ability to return value to shareholders supported by strong cash flow.
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Analysts Claim Nvidia is Massively Undervalued
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- Surge in AI Demand: Ives emphasized that with the skyrocketing demand for artificial intelligence, Nvidia's chips play a crucial role in driving the AI revolution, making its future earnings pivotal.
- Performance Expectations: Ives anticipates a 'gold medal performance' from Nvidia, reflecting not only his confidence in the company's strong earnings but also potentially influencing investor perceptions of its stock.
- Stock Price Reaction: At the time of writing, Nvidia's shares were trading 2% higher, indicating a positive market response to the optimistic expectations surrounding the upcoming earnings report and analyst sentiments.
See More
Jensen Huang: Orbital Data Centers Have Poor Economics
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- Energy and Space Advantages: Huang emphasized the abundance of energy and space in orbit, noting that cooling remains a bottleneck, yet this presents potential opportunities for solar-powered AI satellites in the future.
- Nvidia's Space Hardware: Nvidia has already deployed the MPS GPU and Hopper in space, showcasing the company's technological advancements and market positioning in the space computing sector, which could lay the groundwork for future business growth.
- Market Reaction and Investor Confidence: Investor Gene Munster interpreted Huang's comments as a signal of the potential for orbital data centers, suggesting that despite challenges, they are worth pursuing, reflecting market confidence in Nvidia's future developments.
See More
Trump's Nomination of Warsh May Impact Wall Street
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- Balance Sheet Conundrum: Inheriting a $6.6 trillion balance sheet, Warsh advocates for a substantial reduction, which may raise long-term Treasury yields, consequently increasing borrowing costs and impacting economic growth.
- Inflation vs. Employment Focus: Warsh's voting history indicates a stronger emphasis on inflation over employment, which could exacerbate divisions within the FOMC, affecting policy coherence and influencing market expectations and investment decisions.
- Market Reaction Risks: Warsh's monetary policy stance may not align with other FOMC members, and historically, Wall Street has shown low tolerance for internal dissent within the Fed, potentially leading to increased market volatility and necessitating cautious investor strategies amid future uncertainties.
See More
Nvidia Reports Strong Earnings but Shares Decline
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- Cautious Market Reaction: Despite Nvidia's strong performance, Wall Street's muted response highlights a shift in focus from headline earnings to deeper concerns regarding long-term growth, capital returns, and competitive dynamics in the AI sector.
- Increased Competitive Pressure: As rival AI hardware efforts gain traction, investors are increasingly concerned about future spending patterns and competition from alternative AI chip designs, which has pressured broader technology stocks and underscored the fragility of the AI-led market rally.
- Significant Industry Impact: Nvidia's pullback not only affected its own stock but also weighed heavily on the semiconductor sector, contributing to sluggish performance among major tech benchmarks late in the week, indicating a waning confidence in AI-related stocks.
See More
NVIDIA's AI Growth Continues to Surge Following Impressive Q4 Results
NVIDIA's Q4 Earnings Performance: NVIDIA's Q4 earnings report for fiscal 2026 shows strong revenue growth driven by AI, with a revenue of $68.3 billion, surpassing market expectations and indicating robust cash flow and investment potential.
Market Segments Growth: The company experienced significant growth across critical markets, particularly in data centers, automotive, and gaming, with data center revenue accounting for over 90% of total revenue and growing by 75% year-over-year.
Future Projections: Analysts project continued strong performance for NVIDIA, forecasting $78 billion in revenue for Q1 FY 2027, reflecting a 14.7% sequential increase and a 77% year-over-year growth, excluding China.
Investor Sentiment and Stock Outlook: Analysts maintain a bullish outlook on NVIDIA's stock, with a consensus target price suggesting significant upside potential, supported by strong cash flow and a healthy balance sheet, positioning the company well for future growth.
See More
Nvidia's Q4 Results Exceed Expectations Significantly
- Strong Performance: Nvidia reported an adjusted earnings per share of $1.62 for the quarter ending January 25, with revenue soaring 73% year-over-year to $68.13 billion, significantly exceeding Wall Street's forecast of $65.91 billion, indicating robust market demand and execution.
- Data Center Revenue Surge: Data center revenue reached $62.13 billion, surpassing expectations of $60.36 billion, reflecting a surge in enterprise demand for AI computing, further solidifying Nvidia's leadership in the AI sector.
- Optimistic Outlook: The company anticipates revenue of $78 billion for the upcoming fiscal first quarter, excluding any revenue from China, showcasing confidence in global markets while also indicating a cautious stance towards the Chinese market.
- Dividend Announcement: Nvidia declared a quarterly dividend of $0.01 per share to be paid on April 1, enhancing investor confidence and demonstrating the company's ability to return value to shareholders supported by strong cash flow.
See More
Analysts Claim Nvidia is Massively Undervalued
- Market Underestimation: Dan Ives from Wedbush Securities pointed out that Wall Street analysts have severely underestimated Nvidia's valuation, particularly ahead of the upcoming fourth-quarter earnings report, indicating a neglect of the company's potential.
- Surge in AI Demand: Ives emphasized that with the skyrocketing demand for artificial intelligence, Nvidia's chips play a crucial role in driving the AI revolution, making its future earnings pivotal.
- Performance Expectations: Ives anticipates a 'gold medal performance' from Nvidia, reflecting not only his confidence in the company's strong earnings but also potentially influencing investor perceptions of its stock.
- Stock Price Reaction: At the time of writing, Nvidia's shares were trading 2% higher, indicating a positive market response to the optimistic expectations surrounding the upcoming earnings report and analyst sentiments.
See More
Jensen Huang: Orbital Data Centers Have Poor Economics
- Orbital Data Center Outlook: Nvidia CEO Jensen Huang stated during the earnings call that while the economics of orbital data centers are poor today, they are expected to improve over time, indicating a positive outlook for space computing.
- Energy and Space Advantages: Huang emphasized the abundance of energy and space in orbit, noting that cooling remains a bottleneck, yet this presents potential opportunities for solar-powered AI satellites in the future.
- Nvidia's Space Hardware: Nvidia has already deployed the MPS GPU and Hopper in space, showcasing the company's technological advancements and market positioning in the space computing sector, which could lay the groundwork for future business growth.
- Market Reaction and Investor Confidence: Investor Gene Munster interpreted Huang's comments as a signal of the potential for orbital data centers, suggesting that despite challenges, they are worth pursuing, reflecting market confidence in Nvidia's future developments.
See More
Trump's Nomination of Warsh May Impact Wall Street
- Fed Chair Transition: Trump's nomination of Kevin Warsh to succeed Powell as Fed chair, effective May 15, could lead to significant shifts in monetary policy, potentially undermining investor confidence and market stability.
- Balance Sheet Conundrum: Inheriting a $6.6 trillion balance sheet, Warsh advocates for a substantial reduction, which may raise long-term Treasury yields, consequently increasing borrowing costs and impacting economic growth.
- Inflation vs. Employment Focus: Warsh's voting history indicates a stronger emphasis on inflation over employment, which could exacerbate divisions within the FOMC, affecting policy coherence and influencing market expectations and investment decisions.
- Market Reaction Risks: Warsh's monetary policy stance may not align with other FOMC members, and historically, Wall Street has shown low tolerance for internal dissent within the Fed, potentially leading to increased market volatility and necessitating cautious investor strategies amid future uncertainties.
See More
Nvidia Reports Strong Earnings but Shares Decline
- Earnings Beat: Nvidia's fourth-quarter results surpassed revenue and profit expectations, indicating sustained demand for its AI compute platforms; however, the stock price sharply declined, reflecting investor skepticism about the sustainability of high expectations.
- Cautious Market Reaction: Despite Nvidia's strong performance, Wall Street's muted response highlights a shift in focus from headline earnings to deeper concerns regarding long-term growth, capital returns, and competitive dynamics in the AI sector.
- Increased Competitive Pressure: As rival AI hardware efforts gain traction, investors are increasingly concerned about future spending patterns and competition from alternative AI chip designs, which has pressured broader technology stocks and underscored the fragility of the AI-led market rally.
- Significant Industry Impact: Nvidia's pullback not only affected its own stock but also weighed heavily on the semiconductor sector, contributing to sluggish performance among major tech benchmarks late in the week, indicating a waning confidence in AI-related stocks.
See More
