Nvidia smashes forecasts with record quarter as AI boom rolls on

Nvidia delivered exceptional quarterly results on Wednesday, surpassing market expectations with record revenue of $68.1 billion. The figure represents a 73% increase compared to the same period last year and exceeded analyst projections of $65.7 billion, underscoring the relentless global demand for its artificial intelligence chips.

Quarterly net income surged to $42.96 billion, more than doubling year-over-year. Although the strong performance initially lifted the company’s share price, gains were later trimmed as investors locked in profits.

Nvidia, known for designing the high-performance graphics processing units (GPUs) that power modern AI systems, continues to sit at the center of the artificial intelligence expansion. Established in 1993 and led by CEO Jensen Huang, the Santa Clara-based firm now holds a market valuation above $4.7 trillion, making it the most valuable publicly traded company globally.

Massive spending by major technology players—including Google, Amazon, Meta, and Microsoft—is expected to approach $700 billion this year as competition intensifies in AI development. A significant portion of that investment flows directly to Nvidia, which dominates the market for chips used in training and deploying generative AI models.

Huang described the current phase of AI development as a critical inflection point, driven by the emergence of “agentic AI” — systems capable of autonomous decision-making and action. He emphasized that businesses worldwide are experiencing remarkable demand for such technologies.

He also highlighted the rapid uptake of AI-powered coding and productivity tools like Anthropic’s Claude and OpenAI’s Codex, noting that these solutions are already generating measurable value for enterprises and cloud providers.

Addressing analysts, Huang suggested that traditional software models are undergoing fundamental disruption as AI-driven solutions replace conventional applications. This transformation has weighed on shares of some enterprise software firms in recent weeks.

Nvidia’s data center business once again fueled its growth. Revenue from the division reached a record $62.3 billion for the quarter, reflecting a 75% increase year-over-year and a 22% rise from the previous quarter.

For the fiscal year ending January 25, 2026, Nvidia posted total revenue of $215.9 billion, marking a 65% annual increase. Data center revenue alone climbed 68% year-over-year to $193.7 billion.

Investors also focused closely on Nvidia’s forward guidance. The company projected revenue of approximately $78 billion for the current quarter, plus or minus 2%, comfortably ahead of Wall Street’s $72 billion estimate.

However, Nvidia clarified that its outlook does not include anticipated data center revenue from China due to ongoing U.S. export restrictions on advanced chips. CFO Colette Kress stated that while limited exports of lower-powered chips have been approved, the company has yet to record revenue from those shipments and remains uncertain about future approvals.

As a leading indicator of AI sector momentum, Nvidia’s performance continues to shape investor sentiment. The central question now is whether the rapid pace of AI infrastructure investment can sustain its momentum as the technology expands across industries.

Voice Of Osiz

At Osiz, we view Nvidia’s record-breaking performance as a clear signal that the AI revolution is accelerating at an unprecedented pace. The surge in data center revenue and sustained global demand for AI chips reaffirm the massive infrastructure shift underway. As enterprises rapidly adopt agentic AI and intelligent automation, the technology landscape is fundamentally transforming. Strong capital investments from global tech leaders further validate the long-term growth potential of AI ecosystems. While regulatory challenges and global trade dynamics remain factors to watch, innovation continues to outpace uncertainty. This momentum highlights the growing need for scalable AI, blockchain, and digital transformation solutions. At Osiz, we empower businesses to leverage next-generation technologies and stay ahead in this AI-driven era.

Source: The Hindu