Nvidia shares edge up as cash return questions remain despite revenue outlook beat
#Nvidia #AI chips #earnings report #data centers #H200 #OpenAI #stock performance #China restrictions
📌 Key Takeaways
- Nvidia beat Q4 2026 earnings expectations with $68.13B revenue and $1.62 EPS
- Data center revenue surged 75% YoY to $62.31B, setting a new record
- Company projects Q1 2027 revenue of $78B, significantly above expectations
- No revenue yet from H200 chips to China; finalizing OpenAI partnership
📖 Full Retelling
Nvidia on February 25, 2026, allayed concerns over artificial intelligence demand by comfortably beating quarterly top-and-bottom line expectations and providing better-than-expected current quarter revenue guidance, causing its stock to rise 2.2% after hours as the world's largest publicly listed company demonstrated continued strength in the AI chip market despite recent skepticism. The chipmaker reported earnings of $1.62 per share on revenue of $68.13 billion for its fiscal Q4 2026, surpassing analyst expectations of $1.52 per share on $65.56 billion in revenue. Revenue from data centers reached a record $62.31 billion, representing a 75% year-over-year increase, with hyperscalers accounting for slightly more than half of all data center revenue. CEO Jensen Huang emphasized that 'computing demand is growing exponentially' and highlighted the company's leadership in AI inference technology with products like Grace Blackwell and the upcoming Vera Rubin platform. Looking ahead, Nvidia projected fiscal Q1 2027 revenue of $78 billion, plus or minus 2%, significantly above the consensus estimate of $72.78 billion and implying a 77% year-over-year growth rate. The company noted it wasn't assuming any data center compute revenue from China in its outlook, a notable omission given the geopolitical tensions surrounding semiconductor exports to the country. Separately, Nvidia revealed it has not yet generated any revenue under its H200 licensing program for China and is finalizing an investment and partnership agreement with OpenAI, though it cautioned there was 'no assurance' a transaction would be completed.
🏷️ Themes
Artificial Intelligence, Semiconductor Industry, Market Performance, Geopolitics
📚 Related People & Topics
OpenAI
Artificial intelligence research organization
# OpenAI **OpenAI** is an American artificial intelligence (AI) research organization headquartered in San Francisco, California. The organization operates under a unique hybrid structure, comprising the non-profit **OpenAI, Inc.** and its controlled for-profit subsidiary, **OpenAI Global, LLC** (a...
Nvidia
American multinational technology company
Nvidia Corporation ( en-VID-ee-ə) is an American technology company headquartered in Santa Clara, California. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, it develops graphics processing units (GPUs), systems on chips (SoCs), and application programming interfaces (APIs) for...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Nvidia, Salesforce earnings; U.S.-Iran nuclear talks - what’s moving markets Gold ticks up on softer dollar, markets eye US-Iran nuclear talks Nvidia’s results beat estimates, but Wall Street wants more cash return Nasdaq ends more than 1% higher as Nvidia rises pre-earnings, tech extends rebound (South Africa Philippines Nigeria) Nvidia quells AI demand fears with strong revenue guidance, stock up after hours By Anuron Mitra Author Anuron Mitra Earnings Published 02/25/2026, 03:38 PM Updated 02/25/2026, 05:44 PM Nvidia quells AI demand fears with strong revenue guidance, stock up after hours 31 US500 0.81% NVDA 1.41% Investing.com -- Nvidia (NASDAQ:NVDA) on Wednesday allayed concerns over artificial intelligence demand by comfortably beating quarterly top-and-bottom line expectations and providing better-than-expected current quarter revenue guidance. Shares of the world’s largest publicly listed company rose 2.2% after hours. The stock, like its Magnificent 7 peers, has seen a muted performance so far in 2026, with a 3.4% YTD gain. The advance is still the best YTD showing among the seven heavyweight stocks, and is also better than the benchmark S&P 500 ’s 0.7% rise. Discover more insights on Nvidia on InvestingPro Shot in the arm for the AI trade Nvidia’s results come at a time when the AI trade has been under major scrutiny. In just a span of a few weeks, investors’ perceptions have quickly moved from “AI will lift the entire technology sector” to “AI will result in clear winners and losers.” Sub-sectors such as software, office and enterprise services, and food delivery have been identified as areas which will see major disruption from AI. These disruption fears have added to general concerns about Big Tech’s elevated valuations and massive spending plans, partly to support their AI ambitions. In such an environment, Nvidia’s earnings have taken on even greater significance. Since the explosion of AI in ...
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