Nvidia's Sovereign AI Revenue Triples in Fiscal 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Strong Earnings Report: Nvidia reported a revenue of $68.1 billion for Q4 fiscal 2026, marking a 73% year-over-year increase and surpassing Wall Street's estimate of $66.2 billion, showcasing robust demand for AI and solidifying its leadership in the GPU market.
- Sovereign AI Business Growth: The company's sovereign AI revenue tripled year-over-year to over $30 billion in fiscal 2026, accounting for 13.9% of total revenue, reflecting accelerated investments in AI infrastructure by countries, particularly driven by defense needs from NATO nations.
- Optimistic Future Outlook: Management guided for Q1 fiscal 2027 revenue of $78 billion, significantly exceeding analysts' expectations of $72 billion, indicating sustained strong performance and confidence in the AI sector.
- Space AI Application Potential: CEO Jensen Huang highlighted the significant potential for AI applications in space, noting that while current economics are poor, advancements will lead to the establishment of more AI data centers in space, further expanding the company's market reach.
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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
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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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- 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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- 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.
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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
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- 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
Google Moves Intrinsic Robotics Project to Main Company
- Market Potential: McKinsey projects that the general-purpose robotics market could reach $370 billion by 2040, and by moving Intrinsic from 'Other Bets' to the main company, Google positions itself to capitalize on this significant opportunity, driving growth in the robotics sector.
- Technological Integration: Intrinsic will closely collaborate with Google's AI models, infrastructure, and cloud tools, leveraging DeepMind's technology stack to enhance the efficiency of robotic application development, thereby accelerating time-to-market and strengthening competitive positioning.
- Strategic Partnerships: Intrinsic has partnered with Foxconn to deploy AI robots for electronics assembly in U.S. factories, addressing the strong market demand for smart manufacturing, which is expected to further penetrate the manufacturing sector.
- Innovative Product Launch: Intrinsic's flagship product, Flowstate, enables users to build robotic applications without extensive coding, akin to Google's Android strategy, and the introduction of such open-source tools is likely to attract more developers, further expanding market share.
See More
Rapid AI Advancements Trigger Market Sell-Off
- Technological Progress and Market Reaction: In the first two months of 2026, generative artificial intelligence rapidly evolved from chatbots to full executive assistants, triggering a widespread sell-off in stocks across software, legal, insurance, and cybersecurity sectors, indicating the market's sensitivity to swift AI advancements.
- Erosion of Safety Commitments: Anthropic was blacklisted by the Trump administration for refusing to comply with Pentagon demands, abandoning its initial promise of responsible AI development in favor of 'nonbinding, publicly declared targets,' highlighting the urgency and competitive pressure regarding safety standards in the industry.
- Political Impact and Regulatory Controversy: New York Assemblyman Alex Bores authored the first major AI safety law in the U.S. and is now running for Congress, facing a $125 million super PAC backed by OpenAI co-founder and others, illustrating the significance of AI regulation in the 2026 midterms.
- Internal Industry Turmoil: Recent resignations of researchers at OpenAI and Anthropic, who warned of AI safety risks, reflect growing concerns within the industry about the rapid development of AI technologies, which could influence future technological directions and regulatory policies.
See More
Retail Investors Hype Five Hot Stocks This Week
- Nvidia Price Fluctuation: Despite a 53.88% annual increase, NVDA's post-earnings decline has upset retail investors, with current trading around $185 to $187, indicating a weak short-term price trend that may affect investor confidence.
- Netflix Termination Fee Controversy: NFLX's plan to walk away from the WBD deal could yield a $2.8 billion termination fee; although the stock has declined 12.15% over the past year, its strong short-term performance reflects positive market reaction to strategic decisions.
- AMD Stock Rebound: AMD shares have surged 104.68% over the past year, trading between $201 and $204, showing a strong long-term trend despite weaker short-term performance, indicating investor confidence in future growth.
- Salesforce Market Reaction: CRM's stock has fallen 32.36% over the past year, currently trading between $194 and $201, with retail investors mocking its “dinosaur tech” status, reflecting market skepticism about its innovation capabilities, which may impact future performance.
See More
