Nvidia Stock Climbed after NVIDIA announced record-breaking financial results for its fourth quarter and the full fiscal year 2026. The company reported quarterly revenue of $68.1 billion, a 73% increase year-over-year, driven by massive growth in its Data Center segment.
Despite beating Wall Street expectations, the stock saw only modest gains, raising questions among investors about the long-term sustainability of the AI spending boom.
Record-Breaking Quarter Signals AI Dominance
NVIDIA has once again surpassed Wall Street expectations, reporting phenomenal growth in its latest financial results. The tech giant’s performance highlights the soaring demand for its chips, which are the engine behind the artificial intelligence revolution. Companies are racing to build out their AI infrastructure, and NVIDIA is the primary beneficiary.
CEO Jensen Huang commented on the results, stating, “Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth.” This statement underscores the intense capital expenditure (capex) flowing into the sector.
Key Financial Highlights
The numbers speak for themselves, painting a picture of a company at the top of its game.
- Record Revenue: Q4 revenue hit an unprecedented $68.1 billion, a 20% increase from the prior quarter and a 73% jump from the same period last year.
- Impressive Earnings Per Share (EPS): Non-GAAP EPS for the quarter was $1.62, comfortably beating analyst estimates of $1.53.
- Data Center Growth: The Data Center division was the star of the show, with revenue climbing to $62.3 billion, a massive 75% increase year-over-year. This segment now accounts for 91% of the company’s total sales.
- Annual Profit: For the full fiscal year 2026, NVIDIA posted a total profit of $120.1 billion.
Q4 Performance Snapshot (FY26 vs. FY25)
The year-over-year comparison clearly illustrates the scale of NVIDIA’s growth.
| Metric | Q4 Fiscal 2026 | Q4 Fiscal 2025 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $68.1 billion | $39.3 billion | +73% |
| Data Center Revenue | $62.3 billion | $35.6 billion (est.) | +75% |
| Non-GAAP EPS | $1.62 | $0.89 | +82% |
| Net Income | $42.96 billion | $22.1 billion | +94% |
NVIDIA’s Stock Performance and Future Trends
NVIDIA stock has demonstrated strong momentum on its long-term chart, with the post-earnings move highlighting both opportunity and caution for investors.
Key Technical Indicators:
- Moving Averages: The stock trades well above its 50-day and 200-day moving averages, indicating a sustained long-term uptrend. This trend suggests continued bullish sentiment as long as the price remains above these critical support levels.
- Relative Strength Index (RSI): The RSI has recently touched overbought territory following earnings, signaling potential for short-term volatility or consolidation. However, the overall trend remains positive.
- Volume: High trading volume after the earnings release points to strong investor interest and possible accumulation by institutional players.
- Support and Resistance: Recent price action established new support around previous highs near the $195–$200 range. Upward resistance appears near the recent all-time high, where the stock briefly paused after the earnings spike.
Potential Future Trends:
- Bullish Scenario: A sustained move above the current resistance could trigger another leg higher, especially if demand for AI and data center solutions remains elevated.
- Cautious Watch: If broader market or sector sentiment weakens, a pullback to the 50-day moving average may present a buying opportunity. Any break below this level should be monitored closely for signs of trend reversal.
- Volatility Triggers: Headlines on AI market capex, guidance for upcoming quarters, and broader economic data are likely to cause near-term swings.
Action Points:
- Investors should monitor technical support zones and volume confirmation on rallies.
- Pay attention to earnings guidance and new product announcements, as these can set the tone for the next move.
- Consider risk management strategies if entering at current levels, particularly after a strong run-up.
Market Reaction and Future Outlook
Despite the stellar report, NVIDIA’s stock saw only a slight increase in post-announcement trading. It initially rose about 3% before settling at less than a 1% gain. This muted reaction suggests that investors are looking beyond the immediate results.
The key question on Wall Street is about sustainability. “The debate has shifted away from near-term results and toward the sustainability of AI capex spending,” noted Richard Clode, a portfolio manager at Janus Henderson Investors. Investors are weighing how long the hyperscalers—NVIDIA’s core customers—can maintain this level of investment.
NVIDIA’s guidance for the next quarter remains strong, with revenue expected to be around $78 billion. This forecast suggests the company sees no immediate slowdown in demand.
Actionable Insights for Investors
- Core Strength: NVIDIA’s dominance in the AI chip market is undeniable. The demand for generative AI and accelerated computing continues to fuel its Data Center growth.
- Sustainability Concerns: The stock’s modest reaction reflects market anxiety about a potential “AI bubble.” Investors are cautious about whether the current rate of AI-related spending by major tech companies is sustainable in the long run.
- Look to Guidance: NVIDIA’s consistently strong forward-looking guidance provides a critical signal. As long as the company projects continued growth, it indicates that demand from its largest customers remains robust.
- Beyond the Numbers: Pay attention to CEO commentary on new product cycles, like the upcoming Rubin platform, and partnerships. These are indicators of future growth drivers that can extend the company’s leadership position.
Disclaimer:
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.
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