Nvidia: Sales and forecast are going up – with these numbers the inventory market celebration continues | EUROtoday

Nvidia’s numbers within the fourth quarter of its 2026 fiscal yr are as soon as once more spectacular: The chip firm as soon as once more considerably exceeded Wall Street’s expectations and for the primary time achieved gross sales of greater than $200 billion in a full yr.

Nvidia elevated quarterly gross sales to $68.1 billion; analysts on common had anticipated round $66 billion. Adjusted earnings per share had been additionally above forecasts at $1.62. The information heart enterprise as soon as once more grew significantly strongly, contributing the lion’s share of $62.3 billion.

The actual information for the inventory market, nevertheless, is hidden within the forecast for the present monetary yr: Nvidia introduced revenues of round $78 billion for the present quarter – considerably greater than the market anticipated. So the inventory market celebration continues in the meanwhile, the infrastructure enlargement for synthetic intelligence doesn’t cease. Nvidia is taken into account to set the tempo for all the AI worth chain – from cloud firms and information heart operators to chip suppliers and electrical energy suppliers. When the corporate raises its forecasts, the inventory market often sees this as a sign that the billion-dollar funding applications from Microsoft, Amazon, Alphabet, Meta and others are persevering with.

Nvidia is rising with community know-how for its personal AI chips

At $62.3 billion, greater than 9 tenths of gross sales got here from chips and methods for information facilities – primarily AI accelerators and the related infrastructure. The traditional gaming enterprise solely performs a minor function at $3.7 billion, despite the fact that it elevated year-on-year. The automotive section additionally remained insignificant as compared.

At the identical time, Nvidia has additionally made itself a heavyweight within the community know-how section for information facilities. Since its personal AI supercomputers solely work optimally with proprietary high-speed connections, the corporate not solely sells supercomputers, but in addition the suitable infrastructure. Quarterly gross sales from community know-how alone now quantity to round $15 billion. In phrases of gross sales, Nvidia is now one of many largest community suppliers on the earth.

What can also be noteworthy is the continued exceptionally excessive profitability. The gross margin was round 75 p.c, which is on the higher finish of the forecast. Nvidia has up to now managed to translate the large demand for its AI chips into excessive costs and secure margins, regardless of rising manufacturing prices and big investments in new architectures.

At the identical time, commerce receivables and inventories elevated considerably year-on-year. This could be a reflection of excessive demand and longer provide chains, however is being watched intently by buyers as a result of it additionally hides dangers within the occasion of a potential weakening of the increase.

The backside line is that Nvidia achieved gross sales of round $216 billion for the total yr – a rise of greater than 70 p.c in comparison with the earlier yr – and a web revenue within the three-digit billion vary. In doing so, the group underlines its function as the one firm up to now that truly makes important income with AI merchandise.

AI tokens are meant to switch traditional software program merchandise

But that can quickly change, defined Nvidia CEO Jensen Huang and spoke in a gathering with analysts a few basic shift in the way in which software program is created sooner or later. The world is transferring from traditional, pre-programmed software program to “token-driven” AI, i.e. methods that generate content material, selections and processes in actual time. Token technology – i.e. the computational steps with which giant fashions derive texts, pictures or actions – is turning into the core of virtually each digital software.

While traditional information facilities primarily saved and retrieved information, factories for AI tokens at the moment are being constructed, which require many occasions extra computing energy. According to Huang, the required infrastructure improvement would require investments of three to 4 trillion {dollars} by 2030: “We are now pretty sure that this is the future of computing.” Since sooner or later virtually each firm – from cloud suppliers to software program homes to industrial and robotics firms – will function or use their very own AI fashions, the trade is barely at the start of a brand new international funding cycle.

As lengthy as the foremost cloud suppliers and companies make investments billions in new information facilities worldwide, Nvidia will stay the largest beneficiary of the AI ​​increase. But the trade’s dependence on a single provider is rising, as is the peak of the autumn. Any slowdown in orders, regulatory intervention or geopolitical restrictions, corresponding to within the China enterprise, may shortly change the dynamic. For now, nevertheless, the numbers ship precisely what the inventory market needs to listen to: the AI ​​funding cycle continues to run at full velocity.