Nvidia’s fourth-quarter earnings, released Wednesday evening, exceeded analyst expectations, driving a 2.77 percent increase in the company’s stock price in after-hours trading. The technology giant, currently valued at $4.785 trillion, reported revenue of $68.1 billion, surpassing Bloomberg’s forecast of $65.9 billion. Adjusted earnings per share reached $1.62, similarly exceeding predictions.
Although largely positive, Nvidia’s results weren’t without nuance. The company’s gross margin came in at 71.1 percent, falling short of the anticipated 74.7 percent. Despite this, industry analysts remain optimistic, particularly regarding Nvidia’s future prospects.
“These were very good figures, quite solid,” said Robert Næss, Chief Investment Officer at Nordea, to E24. “We now almost expect Nvidia to beat expectations. And they did so convincingly.”
A key driver of this success is the surging demand for Nvidia’s data center business, which provides the chips essential for training and running artificial intelligence. Data center revenue reached $62.3 billion, exceeding the $60.4 billion predicted by analysts, representing a 75 percent increase year-over-year, or $26.7 billion.
Nvidia has also upwardly revised its guidance for the first quarter of 2026, projecting revenue between $76.4 and $79.5 billion, up from a previous estimate of $72.7 billion. Næss believes this could lead to record-breaking annual revenue, potentially reaching approximately $200 billion. “If the estimates hold true, it will be a new world record. Never has a company earned so much money in a year as Nvidia is projected to earn this year,” he stated.
The company’s report indicated it does not anticipate any data center revenue from China in the current period. This comes as major tech companies, including Alphabet, Meta, Microsoft, and Amazon, collectively plan to invest nearly $700 billion in artificial intelligence this year, a more than 60 percent increase from 2025, according to CNBC.
Harald Jerimiassen previously told E24 that these investments are consistently increasing, with Nvidia remaining the primary supplier despite competition from companies like Google. “On every single quarter, they just increase guidance on the investments. It’s not like they suddenly started spending more money, this has been a trend over several years. You have some alternatives from Google and others, but the main supplier is still Nvidia.”
In July 2025, Nvidia achieved a $4 trillion market valuation, becoming the first company in history to reach this milestone, surpassing Apple and Microsoft, a surge fueled by the rapid adoption of AI technologies following the release of ChatGPT in late 2022.
