Nvidia Corp. Chief Executive Officer Jensen Huang speaks at the 2026 CES event in Las Vegas, Nevada, USA, Tuesday, January 6, 2026. Siemens and NVIDIA announced an expansion of their strategic partnership to develop industrial and physical AI solutions to bring AI-driven innovation to industrial workflows. Photographer: Bridget Bennett/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images
Nvidia The company reported 11 consecutive quarters of more than 55% revenue growth as major technology companies brought more of its AI chips to market. Already the world’s most valuable publicly traded company, its growth is now reaccelerating.
Nvidia said in its earnings report Wednesday that revenue for the current quarter will be about $78 billion, up about 77% from a year ago. This would be the highest growth rate since the quarter ending January 2025 (slightly above 78%). That forecast beat analysts’ average estimate of $72.6 billion, according to LSEG.
Fourth-quarter sales increased 73%, following a 62% increase in the prior quarter and also exceeding expectations. Nvidia’s data center business, home to its AI graphics processing unit, now accounts for more than 91% of its revenue.
The chipmaker’s optimistic outlook comes as the company ramps up production of Vera Rubin, its next AI rack-scale system to replace Grace Blackwell. According to Nvidia, the system’s 72 next-generation Rubin graphics processing units (GPUs) are expected to deliver a 10x increase in performance per watt compared to previous generations.
Finance chief Colette Kress said in a post-press earnings call that Nvidia expects the company to “ship the first Vera Rubin samples to customers early this week” and that eventually all model builders and cloud providers will deploy the system. He said the company now expects growth this year to exceed what was included in the company’s forecast last year of a potential $500 billion revenue opportunity between Blackwell and Rubin.
“We believe we have inventory and supply commitments to meet future demand, including shipments through calendar 2027,” Kress said.
After initially soaring, Nvidia’s stock price was little changed in after-hours trading, reflecting investors’ high expectations for the company, which is valued at about $5 trillion thanks to its dominance in AI processors.
Competition from smaller rivals is imminent. advanced micro device plans to release Helios, its first rack-scale system for AI, later this year. Earlier this week, Meta introduced up to 6 gigawatts of AMD GPUs and promised to start shipping Helios in 2026.
Nvidia also faces challenges from some of its largest customers. Amazon and google — We manufacture AI chips in-house to power our data centers. Nvidia said in its annual report that a potential risk to future results is that “customers develop their own in-house solutions.”
Looking beyond fiscal 2027, growth is expected to slow significantly from 63% this year to 30%, 11.5%, and 3% over the next three years, according to LSEG.
“Computing equals revenue”
But for now, NVIDIA’s growth has far outpaced its competitors and peers as tech giants and AI model developers race to build out infrastructure to handle the surge in demand.
“In this new world of AI, compute equals revenue,” CEO Jensen Huang said during an earnings call Wednesday. He repeated that phrase and variations of it several times during the conference call in connection with the rapid adoption of agent AI beyond early generative AI by allowing companies to create and run applications using text prompts.
Anthropic’s Claude Cowork quickly became popular within enterprises by connecting to more applications. And earlier this month, OpenAI hired OpenClaw developer Peter Steinberger after his tools soared in popularity by automating tasks such as managing email and calendars, browsing the web, and interacting with online services.
“Between Claude Cowork and OpenClaw, we are seeing a surge in compute demand and the ChatGPT moment for agent AI has arrived,” Huang said on the call.
Nvidia’s first-quarter forecast does not include potential data center revenue from China. Even after President Donald Trump approved sales of Nvidia’s H200 chips to China in January and announced that the U.S. government would receive 25% of sales, uncertainty over export controls has prevented Nvidia from selling to the world’s second-largest economy.
Fan said in May that China’s AI market was likely to reach around $50 billion within two to three years, and missing out would be a “huge loss.” It’s an opportunity that hasn’t opened up yet.
“Although a small number of H200 products for customers based in China have been approved by the U.S. government, we have not yet generated any revenue and do not know if they will be allowed to be imported into China,” Kress said on a conference call. “Our outlook does not assume data center computing revenue from China.”
WATCH: ‘Fast Money’ Traders React to NVIDIA’s Quarterly Results
