Company Performance - Nvidia reported a 73% year-on-year rise in quarterly revenue to $68.1 billion for Q4 of fiscal year 2026, marking the highest-ever quarterly revenue for the company and exceeding analysts' expectations of $65.8 billion [1][10] - The company anticipates next quarter revenue could reach $78 billion [1] - Nvidia's gross profit margin was around 75%, and it generated $34.9 billion in free cash flow [2][10] - The diluted EPS increased by 98% year-on-year to $1.76 during the quarter [2][10] Market Reaction - Following Nvidia's results, US stock markets rose, with the Nasdaq Composite gaining approximately 1.3%, the Dow Jones Industrial Average increasing by 0.63%, and the S&P 500 rising by 0.81% [6][10] - The S&P Software & Services index saw a jump of 2.9%, while Nvidia shares increased by around 3% [6][10] Industry Insights - Nvidia's CEO Jensen Huang highlighted the exponential growth in computing demand and the significant rise in enterprise adoption of AI technologies, indicating a pivotal moment for AI [5][10] - Indian IT stocks have experienced volatility, with the Nifty IT index dropping 21% this month, influenced by new AI tools from Anthropic that raised concerns about potential disruptions in the sector [7][10] - Research Analyst Sushovon Nayak from Anand Rathi Institutional Equities believes the AI technology cycle is in its early monetization phase, with Indian IT likely to benefit from increased AI spending [8][10] - Nayak suggests that investors should consider gradually accumulating select IT stocks, especially during price declines of 5-7%, as the recent weakness may be nearing a bottom [9][10]

Sentiment shifted in the stock market this week as investors began to question the value of corporate software and IT services in an age where artificial intelligence may be able to do the job in-house. But the market hasn’t significantly dropped despite the selloff, with analysts saying that investors are instead rotating through to other sectors. This might feel familiar to the more seasoned investor, as it is a flash of déjà vu to the late 1990s when the rewards and risks posed by dotcom innovations beg ...