By Sheryl Estrada
Publication Date: 2026-02-26 13:10:00
Good morning. Traders likely felt some relief on Wednesday evening following Nvidia’s strong Q4 earnings report.
The tech giant, which currently has the largest market cap in the world at about $4.7 trillion, reported record revenue for Q4 of $68.1 billion, up 20% from Q3 and 73% from a year ago. The company also reported record full-year fiscal 2026 revenue of $215.9 billion, up 65%. Nvidia’s data center business posted record quarterly revenue of $62.3 billion, up 22% from Q3 and 75% year over year.
Expectations were high going into the report, as investors looked for reassurance about the sustainability of hyperscaler spending on AI. Jensen Huang, founder and CEO of Nvidia, said in a statement that enterprise adoption of AI agents is “skyrocketing.”
For the first quarter of fiscal 2027, Nvidia guided to revenue of $78 billion. Total supply-related commitments rose from $50.3 billion at the end of the third quarter to $95.2 billion at the end of the fourth quarter, Fortune reported. In a statement, Nvidia said it has “strategically secured inventory and capacity to meet demand beyond the next several quarters.”
On the earnings call, Huang made what I think is an impactful comment: “In this new world of AI, compute equals revenues.” He also said, “Without investing in capacity today, without investing in compute, there cannot be revenue growth.” Computing power is essentially no longer viewed as a cost center but as a direct engine of…
