Nvidia announced better-than-anticipated fiscal fourth-quarter outcomes, fueled by 75 percent revenue growth in its core data center business on Wednesday. The stock increased first in the course of prolonged trading and regained most of the gains.
Here is the company performance, as compared to the analysts polled by LSEG load: Earnings per share are estimated at $1.62 in comparison to $1.53. Revenue: $68.13 billion compared to $66.21 billion estimated.
The overall revenues of Nvidia increased by 73 percent compared to the previous year’s revenues of $39.3 billion. Currently, the company receives more than 91 percent of its sales through its data center division, where its artificial intelligence leading chips are located.
StreetAccount indicated that data center revenues were received at a higher rate of $62.3 billion for the quarter than expected at $60.69 billion. The company said in a press release that net income nearly doubled to $43 billion, or $1.76 a share, compared to $22.1 billion, or 89 cents a share, a year earlier.
Nvidia predicted fiscal first-quarter revenue of $78 billion, with a margin of two percent; the analysts had predicted $72.6 billion. Nvidia indicated that it is not projecting data center revenue in China in its projections.
Nvidia shares are performing better than all their megacap counterparts this year as the company remains the most beneficiary of the AI boom. By the end of Wednesday, the shares had increased by 5 percent in 2026, and the Nasdaq fell by 0.4 percent.
Apple is the only other company in the trillion-dollar club that has recorded gains in the current year by less than 1 percent. Wall Street had a strong preview of what Nvidia can do when the four largest hyperscalers, namely Alphabet, Amazon, Meta, and Microsoft, announced some quarterly results a few weeks ago.
According to their capital expenditure projections, together with the estimates of analysts, total capex in the year may be about $700 billion as the tech giants put into place their AI infrastructure.
In its CFO commentary, Nvidia stated that hyperscalers “remained our largest customer category,” accounting for just over 50 percent of data center revenue.
In the data center business, Nvidia recorded a sale of $10.98 billion of the network parts of the company that were used in connecting hundreds of graphics processing units to the company.
Such sales had increased 263 percent annually, as the firm continued to rapidly adopt its NVLink networking technology, along with its Spectrum-X Ethernet switches, where it was receiving new purchases on the part of giants such as Meta.
However, Nvidia’s gaming unit, which used to be its largest, recorded revenue growth of 47 percent from a year ago to $3.7 billion, but fell 13 percent from the previous quarter.
Analysts have theorized that Nvidia could potentially miss the release of a new gaming GPU this year because memory constraints are compelling chipmakers to focus more on AI processors. In the case of Nvidia, that would include AI accelerators mostly being sold in rack-scale systems such as the 72-GPU Grace Blackwell.
One of the potential areas of concern for investors has been memory due to a shortage worldwide. The company expects supply constraints to be a headwind to Nvidia’s Gaming business “in the first quarter of fiscal 2027 and beyond,” finance chief Colette Kress wrote in her commentary.
Enthusiasm is indicated for the upcoming release of Nvidia’s next-generation Vera Rubin rack-scale systems, the successor to Grace Blackwell, later this year.
Kress added on Wednesday’s call that the company “shipped our first Vera Rubin samples to customers earlier this week, and we remain on track to commence production shipments in the second half of the year.”
Vera Rubin will deliver 10 times the performance per watt and offer energy efficiency in a period where data centers experience significant power limitations.
The company claimed that it is expanding its supply chain beyond Asia, which is its focus, of it and into the U.S. and Latin America.
Nvidia is currently manufacturing Blackwell GPUs at new chip fabrication plants in Arizona by Taiwan Semiconductor Manufacturing Co., and certain of its rack-scale systems are produced by a new large Foxconn plant in Mexico.
Nvidia reported in its financial filing, “These moves are expected to strengthen our supply chain, add resiliency and redundancy, and meet the growing demand for AI infrastructure. Our ability to increase manufacturing capabilities will depend on the local region’s manufacturing ecosystem’s capacity to ramp production supply to the required volume and on a timely basis.”
According to StreetAccount, in the case of automotive, which includes chips for cars and robots, Nvidia reported sales of $604 million for the quarter, up 6 percent compared to the previous year and below analysts’ expectations of $654.8 million.
StreetAccount indicated that in its professional visualization business, Nvidia recorded quarterly revenues of $1.32 billion, an increase of 159 percent compared to the previous year, and above the projected revenues of $755.4 million.
Nvidia has been investing heavily in massive AI laboratories and other firms within the industry, including owning a significant percentage of chipmaker Intel. The company added in its annual filing that it invested $17.5 billion in private companies and infrastructure funds during the year, “primarily to support early‑stage startups.”
Nvidia reported that these investments “may not become profitable in the near term, or at all, and there can be no assurance that we will realize a return on our investments.”
CEO Jensen Huang informed analysts on Wednesday that Nvidia continues “to work with OpenAI toward a partnership agreement and believe we are close.”
The two companies declared a deal worth $100 billion in September, but the deal is not finalized. Thus, in its annual filing on Wednesday, Nvidia reiterated that there is no assurance “that a transaction will be completed.”
