Nvidia's Earnings Exceed Expectations, AI Boom Continues
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy HPE?
Source: CNBC
- Significant Revenue Growth: Nvidia's Q4 fiscal 2026 revenue surged 73% year-over-year to $68.13 billion, surpassing the market expectation of $66.2 billion, indicating robust and sustained demand for AI technologies, thereby reinforcing its market leadership.
- Adjusted EPS Increase: Adjusted earnings per share (EPS) rose 82% to $1.62, exceeding the consensus estimate of $1.53, reflecting strong performance in cost management and product demand, which enhances investor confidence.
- Optimistic Guidance: Management forecasts Q1 fiscal 2027 revenue to reach $78 billion, significantly above the market expectation of $72.6 billion, demonstrating strong confidence in future growth, particularly in the data center and AI sectors.
- Strong Data Center Performance: Data center revenue grew 75% year-over-year to $62.3 billion, exceeding the anticipated $60.7 billion, indicating success in diversifying its customer base and reducing reliance on any single large customer, thus mitigating future spending risks.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HPE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on HPE
Wall Street analysts forecast HPE stock price to rise
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 20.840
Low
21.00
Averages
27.13
High
31.00
Current: 20.840
Low
21.00
Averages
27.13
High
31.00
About HPE
Hewlett Packard Enterprise Company is a global technology company focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. Its customers range from small-and-medium-sized businesses to large global enterprises and governmental entities. Its segments include Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. Its Server segment offerings consist of general-purpose servers for multi-workload computing, workload-optimized servers, and integrated systems. Its Hybrid Cloud segment offers a range of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. The Networking segment develops and sells high-performance networking and security products and services. Its Financial Services segment provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services.
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 Reports Blowout Earnings but Stock Declines
- Strong Earnings Report: Nvidia's revenue surged 73% year-over-year to $68 billion in the January quarter, with a forecast of 77% growth for the current quarter, indicating robust compute demand despite concerns about future growth deceleration.
- Negative Market Reaction: Despite the impressive earnings, Nvidia's stock fell 6% over the past week and is down 16% year-to-date, reflecting investor worries about peaking capital expenditures and increasing competition in the AI chip market.
- Intensifying Competition: OpenAI announced it will utilize 2 gigawatts of Amazon's Trainium AI chip capacity, reducing reliance on Nvidia's GPUs, while Meta is also exploring alternatives, further intensifying competitive pressures on Nvidia.
- Analyst Insights: Despite facing short-term challenges, Jefferies analysts view Nvidia's stock as attractive at current levels, recommending buying, with expectations of a future rebound as the stock becomes cheaper.
See More
Dell Technologies Reports Strong Quarter, Stock Rises 12%
- Dell's Strong Earnings: Dell Technologies reported a blowout quarter driven by AI buildout, resulting in a 12% stock increase, with AI server revenue expected to double to approximately $50 billion in the new fiscal year, highlighting the company's robust growth potential in the AI sector.
- CoreWeave's Capital Expenditure Surge: CoreWeave plans to invest $30 billion to $35 billion in data center construction for 2026, significantly exceeding the Street's estimate of $26.9 billion, and despite a sharp decline in shares, nearly all new capacity is allocated, indicating strong market demand.
- Block's Workforce Reduction: Jack Dorsey's Block announced a 40% workforce cut, stating that intelligence tools have changed company operations, and despite flat revenues in 2025, Morgan Stanley upgraded its rating from hold to buy, reflecting confidence in its potential growth.
- Zscaler's Underwhelming Performance: Although Zscaler delivered a beat-and-raise quarter, its shares fell 11% in premarket trading, indicating market caution regarding software valuations, as analysts remain skeptical about future profitability in the sector.
See More
Nvidia's Earnings Beat Expectations Boosts Market Sentiment
- Strong Earnings Report: Nvidia's latest earnings report revealed a 75% revenue growth in its core data center business, exceeding market expectations and resulting in a 1.4% stock price increase in after-hours trading, highlighting robust market demand and the company's leadership in AI.
- Positive Market Reaction: Nvidia's earnings and Oracle's rating upgrade collectively boosted U.S. markets, with the S&P 500 rising by 0.81% and the Nasdaq Composite increasing by 1.26%, indicating a gradual recovery in investor confidence towards AI technologies.
- Optimistic Industry Outlook: CEO Jensen Huang noted that the rapid advancement of AI technology has led to demand for computing that is
See More
Nvidia's Earnings Exceed Expectations, AI Boom Continues
- Significant Revenue Growth: Nvidia's Q4 fiscal 2026 revenue surged 73% year-over-year to $68.13 billion, surpassing the market expectation of $66.2 billion, indicating robust and sustained demand for AI technologies, thereby reinforcing its market leadership.
- Adjusted EPS Increase: Adjusted earnings per share (EPS) rose 82% to $1.62, exceeding the consensus estimate of $1.53, reflecting strong performance in cost management and product demand, which enhances investor confidence.
- Optimistic Guidance: Management forecasts Q1 fiscal 2027 revenue to reach $78 billion, significantly above the market expectation of $72.6 billion, demonstrating strong confidence in future growth, particularly in the data center and AI sectors.
- Strong Data Center Performance: Data center revenue grew 75% year-over-year to $62.3 billion, exceeding the anticipated $60.7 billion, indicating success in diversifying its customer base and reducing reliance on any single large customer, thus mitigating future spending risks.
See More
Nvidia Earnings Outlook Remains Strong Amid Market Challenges
- High Market Expectations: Nvidia is set to report its earnings after Wednesday's close amid market volatility, with analysts expecting adjusted earnings of $1.53 per share and revenue of $66.2 billion, driven by strong AI compute demand and capital expenditures.
- Optimistic Analyst Ratings: Among 66 analysts, 23 maintain a strong buy rating and 38 a buy rating, with JPMorgan's year-end price target of $250 suggesting a 29.6% upside, reflecting confidence in Nvidia's future performance.
- Strong Product Demand: Analysts from Morgan Stanley and TD Cowen highlight accelerating demand for Vera Rubin, with expectations that Nvidia may exceed management's previous guidance of $500 billion in orders by the end of 2026, further boosting company performance.
- Innovation-Driven Growth: CEO Jensen Huang will present at the upcoming TMT conference and GTC developer event, where he is expected to discuss the progress of Vera Rubin, potentially unlocking new growth opportunities and solidifying Nvidia's leadership in the AI sector.
See More
Nvidia Unveils Vera Rubin AI System Promising 10x Efficiency
- Performance Boost: Nvidia's new AI system, Vera Rubin, is set to deliver 10 times the performance per watt compared to its predecessor, Grace Blackwell, with an expected rollout in the second half of 2026, significantly enhancing AI computing capabilities to meet surging market demand.
- Global Supply Chain Integration: Comprising 1.3 million components, Vera Rubin's core chips include 72 Rubin GPUs and 36 Vera CPUs, primarily sourced from TSMC, showcasing Nvidia's ability to manage a complex global supply chain while relying on a diverse supplier base.
- Intensifying Market Competition: Nvidia's dominance in the AI processor market is challenged by fierce competition from AMD, Broadcom, and Google's custom silicon, particularly as major customers seek to diversify their supply sources, necessitating Nvidia to maintain technological leadership to preserve market share.
- Cost and Efficiency: While Vera Rubin's power consumption is expected to be double that of its predecessor, its tenfold performance return offers significant efficiency advantages, with an estimated price increase of about 25% over Grace Blackwell, bringing the system's cost to between $3.5 million and $4 million, reflecting the high market value of advanced AI infrastructure.
See More
Nvidia Reports Blowout Earnings but Stock Declines
- Strong Earnings Report: Nvidia's revenue surged 73% year-over-year to $68 billion in the January quarter, with a forecast of 77% growth for the current quarter, indicating robust compute demand despite concerns about future growth deceleration.
- Negative Market Reaction: Despite the impressive earnings, Nvidia's stock fell 6% over the past week and is down 16% year-to-date, reflecting investor worries about peaking capital expenditures and increasing competition in the AI chip market.
- Intensifying Competition: OpenAI announced it will utilize 2 gigawatts of Amazon's Trainium AI chip capacity, reducing reliance on Nvidia's GPUs, while Meta is also exploring alternatives, further intensifying competitive pressures on Nvidia.
- Analyst Insights: Despite facing short-term challenges, Jefferies analysts view Nvidia's stock as attractive at current levels, recommending buying, with expectations of a future rebound as the stock becomes cheaper.
See More
Dell Technologies Reports Strong Quarter, Stock Rises 12%
- Dell's Strong Earnings: Dell Technologies reported a blowout quarter driven by AI buildout, resulting in a 12% stock increase, with AI server revenue expected to double to approximately $50 billion in the new fiscal year, highlighting the company's robust growth potential in the AI sector.
- CoreWeave's Capital Expenditure Surge: CoreWeave plans to invest $30 billion to $35 billion in data center construction for 2026, significantly exceeding the Street's estimate of $26.9 billion, and despite a sharp decline in shares, nearly all new capacity is allocated, indicating strong market demand.
- Block's Workforce Reduction: Jack Dorsey's Block announced a 40% workforce cut, stating that intelligence tools have changed company operations, and despite flat revenues in 2025, Morgan Stanley upgraded its rating from hold to buy, reflecting confidence in its potential growth.
- Zscaler's Underwhelming Performance: Although Zscaler delivered a beat-and-raise quarter, its shares fell 11% in premarket trading, indicating market caution regarding software valuations, as analysts remain skeptical about future profitability in the sector.
See More
Nvidia's Earnings Beat Expectations Boosts Market Sentiment
- Strong Earnings Report: Nvidia's latest earnings report revealed a 75% revenue growth in its core data center business, exceeding market expectations and resulting in a 1.4% stock price increase in after-hours trading, highlighting robust market demand and the company's leadership in AI.
- Positive Market Reaction: Nvidia's earnings and Oracle's rating upgrade collectively boosted U.S. markets, with the S&P 500 rising by 0.81% and the Nasdaq Composite increasing by 1.26%, indicating a gradual recovery in investor confidence towards AI technologies.
- Optimistic Industry Outlook: CEO Jensen Huang noted that the rapid advancement of AI technology has led to demand for computing that is
See More
Nvidia's Earnings Exceed Expectations, AI Boom Continues
- Significant Revenue Growth: Nvidia's Q4 fiscal 2026 revenue surged 73% year-over-year to $68.13 billion, surpassing the market expectation of $66.2 billion, indicating robust and sustained demand for AI technologies, thereby reinforcing its market leadership.
- Adjusted EPS Increase: Adjusted earnings per share (EPS) rose 82% to $1.62, exceeding the consensus estimate of $1.53, reflecting strong performance in cost management and product demand, which enhances investor confidence.
- Optimistic Guidance: Management forecasts Q1 fiscal 2027 revenue to reach $78 billion, significantly above the market expectation of $72.6 billion, demonstrating strong confidence in future growth, particularly in the data center and AI sectors.
- Strong Data Center Performance: Data center revenue grew 75% year-over-year to $62.3 billion, exceeding the anticipated $60.7 billion, indicating success in diversifying its customer base and reducing reliance on any single large customer, thus mitigating future spending risks.
See More
Nvidia Earnings Outlook Remains Strong Amid Market Challenges
- High Market Expectations: Nvidia is set to report its earnings after Wednesday's close amid market volatility, with analysts expecting adjusted earnings of $1.53 per share and revenue of $66.2 billion, driven by strong AI compute demand and capital expenditures.
- Optimistic Analyst Ratings: Among 66 analysts, 23 maintain a strong buy rating and 38 a buy rating, with JPMorgan's year-end price target of $250 suggesting a 29.6% upside, reflecting confidence in Nvidia's future performance.
- Strong Product Demand: Analysts from Morgan Stanley and TD Cowen highlight accelerating demand for Vera Rubin, with expectations that Nvidia may exceed management's previous guidance of $500 billion in orders by the end of 2026, further boosting company performance.
- Innovation-Driven Growth: CEO Jensen Huang will present at the upcoming TMT conference and GTC developer event, where he is expected to discuss the progress of Vera Rubin, potentially unlocking new growth opportunities and solidifying Nvidia's leadership in the AI sector.
See More
Nvidia Unveils Vera Rubin AI System Promising 10x Efficiency
- Performance Boost: Nvidia's new AI system, Vera Rubin, is set to deliver 10 times the performance per watt compared to its predecessor, Grace Blackwell, with an expected rollout in the second half of 2026, significantly enhancing AI computing capabilities to meet surging market demand.
- Global Supply Chain Integration: Comprising 1.3 million components, Vera Rubin's core chips include 72 Rubin GPUs and 36 Vera CPUs, primarily sourced from TSMC, showcasing Nvidia's ability to manage a complex global supply chain while relying on a diverse supplier base.
- Intensifying Market Competition: Nvidia's dominance in the AI processor market is challenged by fierce competition from AMD, Broadcom, and Google's custom silicon, particularly as major customers seek to diversify their supply sources, necessitating Nvidia to maintain technological leadership to preserve market share.
- Cost and Efficiency: While Vera Rubin's power consumption is expected to be double that of its predecessor, its tenfold performance return offers significant efficiency advantages, with an estimated price increase of about 25% over Grace Blackwell, bringing the system's cost to between $3.5 million and $4 million, reflecting the high market value of advanced AI infrastructure.
See More
