By Bram Berkowitz
Publication Date: 2026-03-04 15:40:00
After investors anxiously waited last week for artificial intelligence giant Nvidia (NVDA +1.50%) to deliver its fiscal 2026 fourth-quarter report, the company provided them with better-than-expected results and issued better-than-expected guidance for its current quarter. Furthermore, its gross margin guidance was solid.
Yet the stock fell by nearly 5.5% on Feb. 26, the day after the report. Here’s what Nvidia’s blockbuster quarter and Wall Street’s response to it tells us about the state of the stock market and artificial intelligence trade.
What more can investors ask for?
Nvidia reported $1.62 adjusted earnings per share on $68.1 billion of revenue, handily beating the earnings of $1.53 per share on $66.2 billion in revenue that Wall Street analysts expected. Furthermore, management guided for revenue of roughly $78 billion in the current quarter. The consensus analyst estimates had only projected $72.6 billion. Moreover, that guidance figure does not factor in any assumptions of revenue from selling chips in China.
Image source: Getty Images.
Nvidia also guided for full-year gross margins of about 75%, after delivering a 75.2% adjusted gross margin in the recent quarter, indicating that the company is maintaining its strong pricing power.
CFO Colette Kress also said that customers are excited to get their hands on the company’s next-generation AI platform, Vera Rubin, which will succeed the current Grace Blackwell platform. The first Vera Rubin samples have been…
