The world’s most valuable company has reported another series of disappointing results, putting fears of the AI ​​bubble bursting to rest for the time being.
Nvidia said its revenue reached another all-time high by more than $200bn (£147bn) in the 2026 financial year, far exceeding Wall Street estimates and the company’s own guidance.
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This marked the largest increase from one three-month period to the next in the company’s history.
The set of results was described as “absolutely spectacular” by Kyle Rodda, senior financial markets analyst at trading platform Capital.com, and “monster” by Kathleen Brooks, research director at broking firm XTB.
Across a number of metrics, Nvidia recorded notable growth: gross profit surpassed $150bn (£110bn) in the 12 months to the end of January. Data centre revenue reached $62bn (£45.7bn) in the most recent three-month period alone, as the company said it saw demand from a diverse customer base.
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The company said in a call with investors that demand is “broad, diverse and expanding”, while its Chief Executive Jensen Huang said the need for computing is “increasingly high”, and so is the demand for his company’s chips.
Nvidia also said it expected revenue to rise even further to $78bn (£57.5bn) during the current three-month period running to the end of April.
Why focus on Nvidia?
These results matter because Nvidia is a key company behind the artificial intelligence (AI) boom, given both the tech company’s skyrocketing valuation and the growing use and potential of AI in recent years.
The expansion of AI into daily life is being driven by Nvidia computer chips. They are a key part of AI chatbots like ChatGPT. Nvidia’s customers are the world’s largest technology companies.
Its financial performance serves as a good proxy for whether demand for AI products is growing and whether the billions of dollars invested by companies in AI are paying off.
As its share price soared to stratospheric heights, it outperformed major US stock indices to new records.
In October, it became the first company to be worth $5 trillion (£3.83 trillion), equal to the German economy, Europe’s largest, and twice the size of the UK’s benchmark stock index, the FTSE 100.
Why does the AI ​​boom matter?
The creation of AI infrastructure, through data centre construction, has been a significant contributor to US economic growth as measured by gross domestic product (GDP).
Therefore, the faltering AI expansion will impact the US economy, the world’s largest, which in turn impacts the UK and global economies.
What next?
Regardless of the market data, the moves were expected, considering the results and the company’s importance.
Nvidia’s shares rose 2% so much in after-hours trading.
Company officials have exercised caution as they warned about some supply chain issues that could hamper deliveries.
For now, the AI ​​bubble remains intact, but Nvidia results alone may not be enough to calm fears.
