Nvidia releases fourth quarter earnings ahead of annual GTC event

AI giant Nvidia (NVDA) will report its fourth quarter results after the bell on Wednesday. This is the most anticipated announcement of earnings season.

The news was announced just weeks before the company was to host an event. GTC 2026 Event A number of major product announcements will be held in San Jose, California.

This follows the announcement of Nvidia’s latest AI superchip Vera Rubin at the annual CES technology conference in Las Vegas in January.

Most recently, Nvidia expanded its deal with Meta to include a large multi-year deal that will see the semiconductor company provide both Blackwell and Rubin AI processors to the social media giant, as well as the first large-scale standalone deployment of Grace CPU servers.

Despite the momentum, Nvidia stock is up more than 3% since the beginning of the year as of Wednesday morning. Still, it’s better than the small decline in Advanced Micro Devices (AMD) and the larger decline in Broadcom (AVGO). But Intel (INTC) is up almost 25% this year.

Gene Munster, Managing Partner, Deepwater Asset Management I wrote it in a blog post The disconnect between Nvidia’s recent announcements and stock performance depends on whether investors think the AI ​​trade is nearing its end or just getting started.

read more: Live broadcast of corporate earnings

“The real debate is what growth will look like in 2027 and 2028,” Munster wrote. “Ultimately, investors need to determine what stage of AI construction we are at. If it is the fifth time, then growth in 2027 should look more modest. If it is the second time, I believe NVIDIA’s growth prospects for the next few years remain solid.”

Much of that ramp-up this year will continue to come from hyperscalers like Amazon (AMZN), Google (GOOG, GOOGL), Meta (META), and Microsoft (MSFT), which plan to spend a total of $650 billion on AI capital spending in 2026 alone.

Nvidia is expected to post earnings of $1.53 per share and revenue of $65.8 billion in the current quarter, according to Bloomberg analyst consensus estimates. This is up from the $89 million and $39.3 billion the company recorded in the fourth quarter of last year.

Nvidia’s data center business will support much of that growth, with analysts expecting segment revenue of $60.2 billion for the quarter.

But KeyBanc Capital Markets analyst John Bin said in a research note ahead of Nvidia’s earnings release that sales of Nvidia’s Blackwell chips could provide an even bigger boost to the company’s data center revenue.

“We expect Blackwell Ultra shipment growth to be a key driver of our strong performance and outlook, with tailwinds expected from both the sector and the company.” [average selling price]as [Blackwell Ultra] Achieve 20% to 30% higher ASP compared to [Blackwell]. Furthermore, according to our estimates, rack shipment volume growth should also be a key driver. [Nvidia] We plan to ship just under 30,000 lacs this year,” Vinh wrote.

Nvidia CEO Jensen Huang may also provide more clarity on the company’s sales to China. The US has said the company can sell domestically again, but reports are mixed on whether China will accept the chips.

According to Reutersthe government authorized Alibaba (BABA) and Tencent (TCEHY) to purchase Nvidia’s H200 processors. Chinese authorities have previously discouraged companies from buying Nvidia chips and urged them to focus on domestically produced graphics processors instead. Nikkei Asia reported.

Outside of data centers, Nvidia is expected to bring in $4 billion in gaming revenue, up 58% year over year. Nvidia Aiming to introduce in-house CPUs for notebook PCs.

The chip will be a direct competitor to Intel and AMD, as well as Qualcomm (QCOM), which is trying to gain market share in this space.

And while Nvidia won’t make as much money from PC chips as it does from data centers, it will further solidify the company’s position among hardcore gamers and people looking for a laptop to play the occasional title on the go.

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Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter @Daniel Howley.

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