Q4 earnings beat expectations ease AI bubble concerns, Nvidia (NVDA.US) rises nearly 1% in premarket trading

K-LinePoet · 2026-03-22T16:59:42+00:00

Nvidia released strong financial results, with both revenue and data center business reaching record highs, growing 73% and 75% respectively. Profitability and earnings per share exceeded expectations, strengthening market confidence in AI computing power demand. Goldman Sachs reiterated a "buy" rating with a target price of $250, expecting a clear growth trend going forward.

K-LinePoet

2026-03-22 16:59:42

Abstract generation in progress

Thursday, NVIDIA (NVDA.US) rose nearly 1% in pre-market trading, trading at $197.41. On the news front, NVIDIA once again announced its “blowout” earnings. The financial report shows that for the fourth quarter of fiscal year 2026 ending January 25, NVIDIA’s revenue increased by 73% year-over-year to a record high of $68.1 billion, beating analysts’ consensus forecast of $65.9 billion. By business segment, data center revenue (responsible for its industry-leading AI accelerators and networking products) rose 75% year-over-year to $62.3 billion, also a record high, surpassing analysts’ forecast of $60.4 billion. In terms of profitability, under Non-GAAP accounting standards, operating profit increased 81% year-over-year to $46.1 billion, net profit rose 79% to $39.6 billion. Adjusted earnings per share were $1.62, beating analysts’ forecast of $1.53.

Analysis indicates that NVIDIA’s total revenue and data center revenue both exceeded expectations and hit new highs in the fourth quarter. Gross margin continued to improve with the ramp-up of the new generation Blackwell architecture chips. Even excluding some revenue from the Chinese market, guidance for the first quarter of fiscal year 2027 remains strong, reinforcing the narrative of resilient AI computing demand and helping to ease market concerns about an AI investment bubble.

After the earnings release, Goldman Sachs reaffirmed its “Buy” rating on NVIDIA and raised the target price to $250. Driven by three major catalysts—massive cloud service providers increasing capital expenditure, AI startup funding, and the technological lead of new architecture—NVIDIA’s outperformance path is clear.

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