NVIDIA’s AI-Fueled Quarter Beats Expectations with Record Data Centre Growth

Record Revenue Driven by Explosive AI Infrastructure Demand

NVIDIA delivered a standout fourth-quarter performance, reporting record revenue of $68.1 billion, up 73% year over year and 20% sequentially. The results significantly exceeded market expectations, driven primarily by accelerating global demand for AI infrastructure.

The company’s Data Centre segment contributed approximately $62.3 billion, accounting for the vast majority of total revenue and setting a new all-time high. The sharp growth reflects sustained investment in AI model training and inference systems across hyperscalers, enterprises, and AI-native firms.

Gross margins remained exceptionally strong at 75.0%, underscoring NVIDIA’s pricing power and operating efficiency. Meanwhile, diluted earnings per share (EPS) nearly doubled to $1.76, highlighting robust profitability alongside top-line expansion.

Data Centre Growth Reinforces AI Compute Leadership

The Data Centre business continues to anchor NVIDIA’s dominance in the AI semiconductor ecosystem. Strong demand is being driven by:

• Large-scale AI model training
• Expanding inference workloads
• Cloud service provider infrastructure upgrades
• Enterprise AI deployment

Management noted that “computing demand is growing exponentially,” signalling confidence in sustained AI infrastructure spending. NVIDIA positioned its next-generation platforms, Blackwell and Vera Rubin, as central to the next phase of AI data centre expansion.

Importantly, the results suggest demand is broadening beyond hyperscale cloud providers, indicating deeper enterprise penetration and diversification of revenue streams.

Professional Visualization and Enterprise AI Adoption Expand

In addition to Data Centre strength, NVIDIA saw meaningful growth in its Professional Visualization segment, reflecting rising adoption of enterprise AI workstations and AI-powered model deployment tools. This signals that AI demand is expanding across corporate and industrial use cases, further strengthening NVIDIA’s ecosystem advantage.

Segment diversification reduces concentration risk and supports the structural growth story.

Strong FY27 Guidance Signals Continued Momentum

Looking ahead, NVIDIA guided for Q1 FY27 revenue of approximately $78 billion (±2%), signalling continued robust demand momentum. Notably, the guidance assumes no Data Centre revenue contribution from China, highlighting strong global demand outside restricted markets.

Margins are expected to remain near 75%, reflecting product mix strength and operational discipline.

Robust Capital Returns and Shareholder Confidence

NVIDIA returned $41.1 billion to shareholders in FY26 through share buybacks and dividends, underscoring strong free cash flow generation. The company maintains a significant repurchase authorization, signalling confidence in long-term growth prospects and balance sheet strength.

Addressing AI Capex Sustainability Concerns

While some investors remain cautious about the sustainability of AI capital expenditure cycles, NVIDIA’s performance suggests demand remains both strong and diversified. The combination of:

• Record-breaking revenue
• High and stable gross margins
• Strong forward guidance
• Expanding enterprise AI adoption

positions NVIDIA at the core of the global AI transformation.

Conclusion: NVIDIA Remains Central to the AI Revolution

NVIDIA’s latest quarterly results reinforce its leadership in the AI compute market. With record Data Centre growth, strong profitability, and confident forward guidance, the company remains one of the primary beneficiaries of the accelerating global AI buildout.

As enterprises and cloud providers continue scaling AI infrastructure, NVIDIA appears firmly entrenched at the centre of the AI ecosystem - with momentum that shows little sign of slowing.