Against the backdrop of the AI shakedown of the technology market, NVIDIA’s results were eagerly expected by investors. When published on Wednesday, it became clear that market expectations had been exceeded on all fronts, with record revenues in the last fiscal quarter, which ended on January 25 this year.
But even more important than the company’s already impressive performance was its guidance for the current quarter. And the company did not disappoint, according to eToro analyst for Romania, Bogdan Maioreanu.
The revenue for the current quarter is guided to $78 billion, comfortably ahead of the $72.78 billion Wall Street was expecting. The Q1 guidance also assumes zero China data centre revenue at all, amid the uncertainties related to the export restrictions. This means that any easing of these restrictions would be pure upside that isn’t yet priced in. And all this business is done with a gross margin of 75%.
Looking at the results posted for the last fiscal quarter, revenue of $68.13 billion for the quarter beat estimates of around $65.9 billion, and adjusted EPS of $1.62 cleared the $1.54 consensus. Profit for the quarter reached $43 billion, and to put that number in context, that’s more than NVIDIA’s entire annual revenue as recently as 2023. The main driver of revenues was the data center business. Fourth-quarter revenue was a record $62.3 billion, up 22% from the previous quarter and up 75% from a year ago, driven by the major platform shifts — accelerated computing and AI. Full-year revenue rose 68% to a record $193.7 billion.
This is a signal that the AI infrastructure buildout is only accelerating. Microsoft, Amazon, Google and Meta have collectively committed to spending $650 billion on AI infrastructure in 2026, and NVIDIA sits right at the center of the spending wave. That’s evidenced in the numbers, with networking revenue surging 263% year-on-year to a record $11 billion. Ultimately, building out AI at this scale isn’t just about buying chips; it’s about rewiring entire data centers from the ground up.
NVIDIA has locked in $95.2 billion in inventory and capacity commitments, nearly double the level from a year ago. When the world’s biggest companies are spending at this pace, you’d better be ready to deliver. Gaming was the one soft spot, with supply constraints flagged into Q1, but with data centre revenue now at 91% of the business, it’s clearly less of a priority than it was in previous years.
NVIDIA was the most held stock by global and Romanian retail investors on the eToro platform at the end of last year. Investors were eagerly waiting for the earnings report to see if the company is keeping its growth pace. After the results were published, the stock price surged over 3%. Shares of other semiconductor companies, including AMD, ARM, ASML, Taiwan Semiconductor Company and Intel, also surged in after-hours trading following NVIDIA’s results and guidance. This shows that, at least for the hardware producers, the prospects of the data center demand are bright.
Since ChatGPT’s emergence, NVIDIA’s data center revenue has grown nearly 13 times over. The AI race is accelerating, big tech is spending at an unprecedented pace, and NVIDIA remains the company that most big names have to go through to build their tech. While this is an immense opportunity as the big money is here, it could also bring a concentration risk, as the company depends too much on a few clients – the tech giants. However, so far, the spending does not look to be drying up, and NVIDIA reminded us again that it is the main engine powering the AI boom.
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