Nvidia Earnings Set to Test AI Trade Momentum

Editor’s note: As the AI boom accelerates, Nvidia sits at the heart of the conversation about how quickly hardware and software teams scale deployment. This editorial provides a concise context for the press release that follows, focusing on the broader market momentum, the role of data centers in AI infrastructure, and the potential implications of forward guidance for investors and traders in tech and beyond. While this note does not add new facts, it frames the lens through which Nvidia’s earnings will be digested by crypto traders and institutional investors who closely watch AI spending trends, capex cycles, and regional risks.

Key points

• Nvidia continues to be a focal point for AI infrastructure spend, with hyperscalers driving data center demand.
• Rubin, Nvidia’s next-generation platform, is a key area of investor focus alongside the Blackwell ramp and gross margin trajectory.
• Geopolitical risk remains a consideration, with export controls in China presenting potential upside if restrictions ease.
• Forward guidance and near-term revenue expectations are closely watched as drivers of momentum in the AI trade.

Why this matters

Nvidia’s earnings preview signals how AI infrastructure investment could shape market dynamics across technology, finance, and enterprise computing. The year ahead will test whether data center demand, platform innovations, and global capex cycles sustain the AI momentum that has underpinned recent market rally attempts and portfolio allocations.

What to watch next

• Rubin ramp progress and its impact on long-term profitability.
• Any developments on China export restrictions and potential upside if eased.
• Guidance clarity on 2027 AI infrastructure spending and data center revenue trends.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Nvidia Earnings Set to Test AI Trade Momentum

Nvidia Earnings Set to Test AI Trade Momentum

Abu Dhabi, United Arab Emirates – February 23, 2026: Nvidia’s upcoming earnings report is poised to become one of the most significant events on the global financial calendar, reflecting its position at the centre of the artificial intelligence revolution.

“In the same way Apple once defined the smartphone era, Nvidia now represents the AI era,” said Zavier Wong, Market Analyst at eToro. “Its earnings are no longer just a tech sector event — they are a market-wide catalyst that can influence diversified portfolios globally.”

Wall Street expects quarterly revenue of approximately USD $65–66 billion, representing around 68% year-on-year growth, with earnings per share forecast at USD $1.52–1.53. Data centre revenue is projected to approach USD $60 billion, underscoring sustained demand from hyperscalers including Microsoft, Amazon, Google and Meta. Collectively, these companies are expected to allocate between USD $650–660 billion in capital expenditure in 2026, much of which is tied directly to AI infrastructure.

Beyond US technology giants, sovereign AI investment is emerging as a meaningful growth driver. Countries such as the UAE and Saudi Arabia, alongside several European nations, are accelerating domestic AI cloud development. This segment alone could contribute more than USD $20 billion to Nvidia’s annual revenue in 2026, providing further diversification of its revenue base.

Demand continues to be supported by Nvidia’s Blackwell architecture, which management has previously indicated is effectively sold out through mid-year. Market attention is now turning toward Rubin, the company’s next-generation platform unveiled at CES. Gross margins are expected to recover toward the mid-70% range following temporary pressure during the Blackwell ramp-up, a key signal for long-term scalability and profitability.

However, China remains a notable risk factor. Current guidance assumes no H20 chip sales into the region, meaning any easing of export restrictions would represent upside potential. For now, restrictions continue to act as a headwind.

Nvidia shares have traded broadly flat over the past six months, and investors are increasingly focused on forward guidance rather than headline results.

“The real driver of Nvidia’s share price is guidance,” Wong added. “Markets want confirmation that AI infrastructure spending is still in its early innings, especially as questions grow around the sustainability of industry-wide capex.”

Investors are looking for Q1 FY2027 revenue close to USD $75 billion, gross margins back in the mid-70% range, and clearer visibility on the Rubin ramp. Meeting those expectations could reignite momentum across the AI trade, while any shortfall may trigger volatility extending well beyond Nvidia itself.

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