Nvidia Earnings Signal Accelerating AI Infrastructure Boom

Editor’s note: Nvidia’s latest earnings release highlights a booming AI infrastructure cycle, with the company topping expectations and guiding $78 billion for Q1 FY2027. The data centre segment led growth while margins remained robust as hyperscale customers expand their AI deployments. This preview frames a broader trend: AI-ready data centres are becoming the core engine of digital transformation, and Nvidia sits at the center of that wave.

Key points

• NVIDIA (NASDAQ: NVDA) guides Q1 FY2027 revenue midpoint of US$78 billion, above consensus.
• Q4 revenue reached US$68.13 billion, with data centre revenue at US$62.3 billion.
• Data centre revenue accounts for about 91% of total revenue, with gaming softer due to supply constraints.
• Networking revenue surged 263% YoY to US$11 billion; inventory/capacity commitments total US$95.2 billion.
• Hyper-scaler AI infrastructure spending projected at US$650 billion for 2026, driven by Microsoft, Amazon, Google and Meta.

Why this matters

The results reinforce that the AI infrastructure cycle is accelerating, not slowing. Strong data centre demand, high gross margins at 75.2%, and large-scale capacity commitments suggest durable momentum as AI workloads drive broader data-centre re-architecture. The report notes that China data centre revenue could add upside if export restrictions ease.

What to watch next

• Any changes to export restrictions affecting China data centre revenue and potential upside to guidance.
• Trends in data centre demand and Nvidia’s inventory/capacity commitments amid hyperscaler spending.
• Gaming segment performance and supply constraints ahead of Q1.
• Progress of AI infrastructure investments by Microsoft, Amazon, Google, and Meta.

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

Nvidia earnings underscore accelerating AI infrastructure boom

Abu Dhabi, UAE – February 26, 2026: Nvidia has once again delivered a standout set of earnings, beating expectations across the board and, crucially, surpassing its own forward guidance. The company guided Q1 FY2027 revenue to a midpoint of US$78 billion, comfortably ahead of the US$72.78 billion analysts had forecast. Notably, this guidance assumes zero data centre revenue from China, meaning any easing of export restrictions would represent pure upside not currently priced in.

Quarterly revenue reached US$68.13 billion, ahead of consensus expectations of approximately US$65.9 billion. Data centre revenue surged to a record US$62.3 billion, exceeding the US$60.4 billion forecast, while adjusted earnings per share came in at US$1.62 versus expectations of US$1.53. Profit for the quarter totalled US$43 billion — a figure that exceeds Nvidia’s entire annual revenue as recently as 2023. For a company of this scale to sustain such rapid expansion underscores the structural strength of demand.

Gross margins of 75.2% also came in ahead of forecasts, helping to dispel concerns about profitability as the Blackwell platform continues to ramp up. The results send a clear message that the AI infrastructure buildout is not slowing — it is accelerating. Despite recurring scepticism each quarter, Nvidia continues to demonstrate the durability of this cycle.

Spending commitments from Microsoft, Amazon, Google and Meta — collectively projected at US$650 billion for AI infrastructure in 2026 — highlight the scale of investment driving this trend. Nvidia sits firmly at the centre of that wave. Networking revenue alone surged 263% year-on-year to a record US$11 billion, reflecting that the AI transformation extends beyond chips to the full-scale re-architecture of data centres.

The company has secured US$95.2 billion in inventory and capacity commitments, nearly double the level from a year ago, ensuring it can meet demand from hyperscalers operating at unprecedented scale. Gaming was the only softer segment, with supply constraints expected into Q1, but with data centre revenue now accounting for 91% of total revenue, it is no longer the primary growth driver.

Since the emergence of ChatGPT, Nvidia’s data centre revenue has grown nearly thirteenfold. As the AI race intensifies and big tech spending remains at historic highs, Nvidia continues to position itself as the essential enabler of the AI ecosystem — reinforcing why it is widely regarded as the engine powering this technological shift.

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