Nvidia Shatters Records Again as AI Chip Race Pushes Hyperscaler Spending Toward $700 Billion
News Summary
Santa Clara, CA | Wednesday, February 25, 2026 (Eastern Time, ET) — NVIDIA (NASDAQ: NVDA) delivered another record-shattering quarter, reporting Q4 fiscal 2026 revenue of $68.1 billion, a 20% sequential rise and a staggering 73% year-over-year surge. Full-year fiscal 2026 revenue reached $215.9 billion, up 65% from the prior year, cementing NVIDIA's status as the undisputed engine of the global AI infrastructure boom.
Data Center: The Unstoppable Core
NVIDIA's Data Center segment once again dominated the earnings story, posting a record $62.3 billion in quarterly revenue — representing more than 91% of total company sales and a 75% jump from a year ago. For the full fiscal year, Data Center revenues reached $197.3 billion, up sharply from $115.2 billion in fiscal 2025.
The growth was driven primarily by insatiable demand for NVIDIA's next-generation Blackwell GPU architecture, which shipped its first samples to cloud customers and began large-scale commercial deployments during the quarter. Hyperscalers — including Amazon Web Services (AWS), Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure — remained NVIDIA's largest customer category, collectively accounting for just over 50% of Data Center revenue.
Networking sales also emerged as a standout performer, with $10.98 billion in revenue, up 263% year-over-year, reflecting rapid adoption of NVIDIA's NVLink and Spectrum-X Ethernet technologies.
Jensen Huang: "Computing Demand Is Growing Exponentially"
Speaking on the post-earnings analyst call (approximately 5:00 PM ET on Wednesday, February 25, 2026), NVIDIA CEO Jensen Huang delivered an unambiguous message to Wall Street skeptics: the AI investment cycle is far from over.
"Computing demand is growing exponentially — the agentic AI inflection point has arrived. Grace Blackwell with NVLink is the king of inference today — delivering an order-of-magnitude lower cost per token — and Vera Rubin will extend that leadership even further."
Huang also noted that next-generation AI algorithms could eventually require millions of times the current level of computing capacity, dismissing concerns that Big Tech's ballooning capital expenditure plans are unsustainable.
Hyperscaler CapEx: A $700 Billion Tailwind
Perhaps the most striking backdrop to NVIDIA's results is the scale of capital commitments being made across the technology sector. Based on recently reported quarterly results from Alphabet, Amazon, Meta, and Microsoft, combined Big Tech capital expenditure for 2026 is on pace to approach $700 billion — the vast majority targeting AI data center infrastructure.
A recent Moody's analysis flagged an additional $662 billion in future data center lease commitments that remain off major tech companies' balance sheets — suggesting the true scope of AI infrastructure spending may be far larger than what is currently disclosed.
For NVIDIA, a significant portion of that capital ultimately translates into chip sales. CFO Colette Kress reiterated that the company sees $500 billion in revenue visibility from its Blackwell and upcoming Rubin platform from the start of 2025 through end of 2026. She added that NVIDIA believes total AI infrastructure investment could reach $3 trillion to $4 trillion annually by 2029–2030.
Vera Rubin: The Next Frontier
NVIDIA used the earnings call to preview the road ahead. The company confirmed that its next-generation Vera Rubin platform — comprising six new chips and targeting up to a 10x reduction in inference token cost compared with Blackwell — is on track, with first samples already shipped to customers as of the week of the earnings report (week of February 23, 2026, ET). AWS, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure are expected to be among the first to deploy Vera Rubin-based instances.
NVIDIA also announced a multiyear, multigenerational strategic partnership with Meta, covering large-scale deployment of millions of NVIDIA Blackwell and Rubin GPUs across on-premises and cloud AI infrastructure.
Bottom Line and Outlook
For the first quarter of fiscal 2027, NVIDIA guided for revenue of approximately $78.0 billion (± 2%), well above analyst consensus estimates of $72.6 billion. GAAP net income for Q4 fiscal 2026 was approximately $43 billion — up 94% year-over-year — while GAAP diluted EPS came in at $1.76 for the quarter and $4.90 for the full fiscal year.
NVIDIA's market capitalization at the time of the earnings release stood at approximately $4.8 trillion, reflecting the market's conviction that AI-driven compute demand will continue to compound for years to come.