Nvidia Earnings Results Steady Markets as AI Spending Debate Intensifies
U.S. stocks rose modestly as investors assessed Nvidia’s strong earnings against uncertainty over the future of global AI investment. Nvidia reported fourth-quarter revenue of $68.1 billion, up 73% year-over-year, driven mostly by a 75% increase in data-center sales to $62.3 billion. Net income nearly doubled to $43.0 billion and gross margins held steady at 75%, highlighting robust demand and pricing power. The positive results boosted semiconductor stocks and helped the broader market, with the Nasdaq gaining 1.26% and the S&P 500 up 0.8%; Nvidia shares climbed 1.37% after hours. Bitcoin and Ethereum prices also jumped sharply. Treasury yields declined, indicating lingering caution. Nvidia projected fiscal Q1 2027 revenue of about $78 billion, pointing to ongoing strong AI-related demand, despite no expected China contribution. Management affirmed continued aggressive investment in scaling AI capabilities. CEO Jensen Huang reiterated that AI infrastructure buildout is only beginning, requiring trillions more in investment, countering bubble fears. Goldman Sachs expects AI capital spending growth to peak in 2026, while Ark Invest contends the current investment surge marks the start of a long growth cycle.
