Nvidia's AI Engine Shows No Signs of Slowing

Nvidia closed its fiscal year with a thunderous quarter and a forecast that suggests the artificial intelligence build-out is accelerating, not cooling. For the quarter ended January, revenue surged 73% from a year earlier to $68.13 billion, beating analyst expectations. Profit also jumped, with adjusted earnings per share rising 82% to $1.62.

The real story, however, is what comes next. The company projected current-quarter revenue of approximately $78 billion, shattering estimates by more than $5 billion. This outlook signals that the trillion-dollar investment cycle in AI infrastructure remains in full swing.

Chief Financial Officer Colette Kress stated Nvidia expects sales to grow sequentially throughout 2026, supported by what she described as "inventory and supply commitments" extending into 2027. This points to sustained, high-demand visibility for its current Blackwell chips and the upcoming Rubin generation.

Investors have wondered if Nvidia's blistering annual product cycle would cause customers to pause, waiting for the next big release. Kress offered a counterpoint, noting that even six-year-old Ampere-based products are sold out in the cloud. This suggests a deep and layered market where older chips continue to find utility, allowing cloud providers to confidently invest in new hardware.

While the stock's after-hours move was muted—a shift from its earlier, volatile post-earnings swings—the fundamental picture appears robust. The data center segment, which drove over 90% of revenue, grew 75% year-over-year. Notably, growth was led by customers beyond the hyperscale giants, indicating a broadening of demand.

With companies globally treating AI capability as a non-negotiable part of their future, Nvidia’s position as the primary supplier of the necessary computing power seems more entrenched than ever. The party isn't over; it's just getting more crowded.