Nvidia(US:NVDA) Feng Huang Wang·2026-02-26 05:14Core Insights - Nvidia reported record revenue of $68.127 billion for Q4, a 73% increase from $39.331 billion year-over-year, and a net profit of $42.96 billion, up 94% from $22.091 billion [1] - For the full fiscal year, Nvidia's revenue reached $215.938 billion, with a net profit of $120.067 billion, equating to approximately $328 million per day [1] - Nvidia's performance serves as a barometer for AI demand, indicating that for leading players, there is no downturn, only a resurgence [1] Financial Performance - Nvidia's Q4 revenue of $68.127 billion is a significant milestone, reflecting the ongoing high costs associated with AI [3] - The data center business contributed $62.3 billion in Q4, a 75% year-over-year increase, accounting for over 91% of total revenue [3][4] - Nvidia's full-year revenue surpassed $200 billion for the first time, reaching $215.938 billion [4] Market Dynamics - Nvidia's CEO expressed confidence in the growth of customer cash flows, attributing it to the recognition of the value of Agentic AI across various enterprises [2] - Major cloud providers like Google, Amazon, Meta, and Microsoft are significantly increasing their capital expenditures, with a projected combined spending of nearly $700 billion by 2026 [3] Strategic Initiatives - Nvidia aims to establish a comprehensive AI ecosystem on its platform, encompassing various sectors such as AI, robotics, and life sciences [5] - The company is nearing an agreement with OpenAI for a potential $100 billion AI infrastructure project and has acquired technology from AI startup Groq for approximately $20 billion [5] - Nvidia acknowledges the competitive landscape in China, where local companies are making significant advancements [6] Industry Trends - A McKinsey survey indicates that over 70% of CIOs at large enterprises plan to double their technology spending between 2026 and 2027, with 70% of budgets redirected towards AI [8] - The ROI of AI remains elusive, with clients demanding significant productivity improvements in exchange for large orders [8] - The emergence of Agentic AI is drastically reducing development costs, allowing single individuals to complete tasks that previously required entire teams [9] Future Outlook - Nvidia's inventory is fully booked until 2027, with seamless transitions between product iterations [10] - The company is set to begin mass production of its next-generation Vera Rubin platform in the second half of the year, anticipating widespread deployment among cloud model builders [10]