The chip maker was getting a ton of praise, but shares failed to catch fire.
The AI scare trade punished many tech stocks with strong underlying fundamentals and high earnings growth expectations, presenting new opportunities. Nvidia's earnings often serve as a barometer for AI chip and infrastructure demand as concerns loom over stretched megacap valuations and capex spending. Nvidia and other companies in the infrastructure, hardware, and chip industries have been less vulnerable to AI displacement hysteria than software peers.
Nvidia stock was up slightly in early pre-market trading on Thursday. The chip giant's better-than-expected earnings on Wednesday came amid investor concerns around the AI infrastructure boom.
While the after-hours in the wake of Nvidia's (NASDAQ: NVDA) latest earnings report – published late on February 25, 2026 – failed to be genuinely decisive, the filing was sufficient for DeepSeek, China's most prominent artificial intelligence (AI) model, to take a highly optimistic stance.
There's at least one executive in the artificial intelligence space who doesn't think AI will cannibalize software companies: Nvidia's Jensen Huang.
Anna Edwards, Guy Johnson, Tom Mackenzie and Mark Cudmore break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." Chapters: 00:00:00 - MLIV 00:00:14 - Nvidia 00:01:34 - Japan 00:02:35 - Geopolitics -------- More on Bloomberg Television and Markets Like this video?
The chipmaker's fourth-quarter results and eye-popping guidance left little room for complaint. So why did the stock barely move?
Nvidia's latest annual report omitted sections on climate change and DEI. The report highlighted US chip export rules hindering Nvidia's competitiveness in China's market.
NVIDIA CEO Jensen Huang said the artificial intelligence boom is only just beginning, anticipating that AI is "going to be everywhere."
Nvidia reported $68 billion in fourth-quarter revenue, up 73% from a year earlier, as demand for accelerated computing continued to expand across cloud providers, model builders, enterprises and sovereign customers. Data center revenue rose 75% to $62 billion, increasing 22% from the previous quarter.
Nvidia Corporation remains a core long with a $260 target, supported by exceptional growth, 75%+ gross margins, and $35B quarterly free cash flow. NVDA's earnings are outpacing its stock price, compressing the forward P/E to 24–25x—well below its 5-year average and most high-growth peers. Data Center revenue now exceeds 90% of NVDA's total, with networking outpacing compute growth and signaling a strategic shift toward integrated AI infrastructure.
Huang told CNBC that both the U.S. Department of Defense and Anthropic have reasonable perspectives regarding their dispute on the how Anthropic's Claude model is used by the military. His comments come after Defense Secretary Pete Hegseth gave Anthropic until Friday to loosen its rules on how the Pentagon can use its AI tools, or risk losing its government contract.