The world’s most valuable companies have reported another disappointing set of results, easing fears of an AI bubble bursting for now.
Nvidia said its revenue has set yet another all-time high, reaching more than $200bn (£147bn) in fiscal 2026, far ahead of Wall Street expectations and the company’s own guidance.
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It also recorded the largest growth in the company’s history from one three-month period to the next.
This set of results was described as “absolutely impressive” by Kyle Rodda, senior financial market analyst at trading platform Capital.com, and “monstrous” by Kathleen Brooks, research director at brokerage firm XTB.
Across many metrics, NVIDIA posted impressive growth. In the 12 months to the end of January, gross profits exceeded $150bn (£110bn). The company said it expected demand from a diverse customer base, with data center revenue reaching $62bn (£45.7bn) in the last three months alone.
The company said on a conference call with investors that its demand is “broad, diverse, and growing,” while CEO Jensen Huang said there is “exploiting” demand for computing and therefore demand for the company’s chips.
Nvidia also said it expected revenue for the current three months to the end of April to rise further, reaching $78bn (£57.5bn).
Why focus on Nvidia?
These results are important because Nvidia is the main company behind the artificial intelligence (AI) boom. Both the valuations of tech companies have skyrocketed in recent years and the use and capabilities of AI have increased.
The expansion of AI into everyday life is being driven by Nvidia computer chips. It is an important part of AI chatbots such as ChatGPT. Nvidia’s customers are some of the world’s largest technology companies.
Its financial performance serves as a good indicator of whether demand for AI products is sustained and whether the tens of billions of dollars companies have invested in AI are paying off.
The company’s stock price reached stratospheric highs, pushing the performance of major U.S. stock indexes to new records.
In October, it became the first company to be worth $5tn (£3.83tn). That’s roughly the size of Germany’s economy, Europe’s largest, and twice the size of Britain’s benchmark stock index, the FTSE 100.
Why is the AI boom important?
Building AI infrastructure through data center construction has contributed significantly to U.S. economic growth as measured by gross domestic product (GDP).
Therefore, if the expansion of AI stalls, it will affect the US economy, the world’s largest, and by extension the UK and global economies.
What’s next?
The move was expected given the focus on performance and the company’s importance, regardless of market numbers.
Nvidia’s stock price rose significantly 2% for after-hours trading.
Company executives warned of supply chain issues that could hinder deliveries.
For now, the AI bubble remains intact, but Nvidia’s performance alone may not be enough to calm fears.
