Nvidia revealed its fiscal fourth-quarter results ending 25 January 2026, outperforming analyst forecasts. The Data Center business led with over 91% of revenue and grew 75%, prompting an immediate stock price rise in after-hours trading following the earnings announcement on 25 February.
Nvidia's total revenue this quarter surged 73% from $39.3 billion in the same period last year. Currently, over 91% of revenue comes from the Data Center segment, home to the company's leading AI chips.
Within Data Center, Nvidia's Networking equipment revenue was $10.98 billion, rising 263% year-over-year, reflecting widespread use of NVLink and new deals for Spectrum-X Ethernet Switches with major companies like Meta.
Nvidia projected first-quarter revenue for the next fiscal year at $78 billion, plus or minus 2%, exceeding analyst expectations of $72.6 billion. However, the company clarified this forecast does not yet include Data Center revenue from China.
Some analysts anticipate Nvidia might skip launching a new Gaming GPU this year due to memory constraints, prioritizing AI processors instead.
Additionally, concerns about memory chip shortages remain a key investor worry, Colette Kress, the company's CFO, noted that memory chip supply constraints will continue to pressure the Gaming business in fiscal Q1 2027 and beyond.
Since early 2026, Nvidia shares have risen 5%, while the Nasdaq index declined 0.4%. Among trillion-dollar companies still gaining this year, only Apple has advanced, but by less than 1%.
Earlier, the market received positive signals from earnings reports of four major tech firms—Alphabet, Amazon, Meta, and Microsoft—all revealing heavy investment plans in AI infrastructure. Based on their Capex estimates and analyst assessments, total investment could approach $700 billion this year.
Colette Kress explained that these tech giants “remain our largest customer group,” accounting for over 50% of Nvidia’s Data Center revenue.
Kress also disclosed to analysts that the market is watching the launch of Vera Rubin, a new generation rack-scale AI chip system succeeding Grace Blackwell, expected for customer trials this year.
Vera Rubin is anticipated to deliver up to ten times better performance per watt, a critical advantage amid global Data Center energy constraints.
Nvidia has continued investing, partnering, and growing its business. Recently, it shifted production out of Asia, starting to manufacture Blackwell chips at TSMC’s new U.S. facility and assembling some Rack-scale Systems at Foxconn’s new plant in Mexico.
The company stated in its financial report that these moves will strengthen, increase flexibility, and reduce supply chain redundancy to support rapidly growing AI infrastructure demand.
Additionally, Nvidia has proactively invested in the AI ecosystem by acquiring shares in Intel and investing over $17.5 billion in private companies and infrastructure funds over the past year, focusing on early-stage startups. However, the company cautioned these investments may not yield near-term profits or returns and there is no guarantee of returns.
Regarding the key deal with OpenAI, Jensen Huang, Nvidia’s CEO, told analysts the company continues working with OpenAI to finalize a cooperation agreement and believes it is close to completion. The two companies announced a deal valued over $100 billion in September last year but have yet to finalize it.
Nvidia’s annual report reiterated there is no assurance the transaction will be officially completed.
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