Nvidia Earnings Beat Expectations Amid Market Jitters
Nvidia reported fourth-quarter earnings that surpassed analyst expectations, driven by high demand for its AI chips. Despite the positive results, the market reaction was reportedly tempered, reflecting a high sensitivity to any potential slowdowns or "AI hiccups" in the sector's rapid growth. The results were seen as a critical moment for the broader stock market, given Nvidia's bellwether status for AI infrastructure investment and market confidence.
- Nvidia's record fourth-quarter revenue of $68.1 billion represented a 73% increase year-over-year, surpassing analyst expectations of approximately $66 billion. The company's non-GAAP earnings per share came in at $1.62, also beating the consensus estimate of about $1.52. - The Data Center division was the primary growth engine, reporting a record $62.3 billion in revenue, a 75% increase from the previous year. This segment now constitutes over 91% of Nvidia's total revenue, up from roughly 11% for the gaming division. - For its first quarter of fiscal year 2027, the company issued strong guidance, forecasting revenue of $78 billion, well above the anticipated $72.78 billion. This projection notably excludes any data center compute revenue from China. - While the Data Center segment soared, the Gaming division saw revenue of $3.7 billion, a 47% increase year-over-year but a 13% decrease from the prior quarter, attributed to seasonal inventory adjustments after the holidays. - The Professional Visualization segment experienced massive growth, with revenue surging 159% year-over-year to $1.3 billion, driven by strong demand for the company's Blackwell architecture products. - For the full fiscal year 2026, Nvidia reported a record revenue of $215.9 billion, a 65% increase compared to the previous fiscal year. - While hyperscalers accounted for just over half of data center revenue, the company noted that growth was led by a diversification of other customers, including enterprises and sovereign AI projects. - During fiscal year 2026, Nvidia returned $41.1 billion to shareholders through a combination of share repurchases and cash dividends and has $58.5 billion remaining under its share repurchase authorization.
