Source: Fortune
Summary
Nvidia reported record revenue of $68.1 billion for the fourth quarter, beating guidance by $3 billion. The company’s GAAP gross margin rose to 75%, beating guidance and up from 73.4% in Q3. Nvidia’s stock rose more than 2% in after-hours trading. The company’s full-year revenue hit $215.9 billion, up 65% from last year. Nvidia’s CEO Jensen Huang said “Computing demand is growing exponentially” and “Enterprise adoption of agents is skyrocketing.”
Our Reading
The numbers tell one story.
Nvidia’s revenue and gross margin beat expectations, but the company’s guidance for the first quarter of fiscal 2027 is $78 billion, up from $50.3 billion in the third quarter. Total supply-related commitments rose to $95.2 billion. Nvidia’s CEO Jensen Huang is optimistic about the company’s prospects, saying “Computing demand is growing exponentially” and “Enterprise adoption of agents is skyrocketing.” The company’s stock rose briefly in after-hours trading before giving back gains. Nvidia’s results come amid concerns about AI over-investment and high-stakes spending among hyperscalers.
Nvidia is playing it cool, but the stakes are high.
Author: Evan Null
