--- title: "NVIDIA's fourth-quarter sales reached a record of $68 billion, alleviating bubble concerns" type: "News" locale: "en" url: "https://longbridge.com/en/news/276991936.md" description: "NVIDIA reported fourth-quarter sales of $68.1 billion, with net profit increasing by 94%, exceeding market expectations and alleviating concerns about an artificial intelligence bubble. Data center hardware sales accounted for 91.4%, and CEO Jensen Huang stated that the calculation method has changed, and the era of artificial intelligence will disrupt business models. Despite facing pressure, NVIDIA's gross margin steadily rose to 75%" datetime: "2026-02-26T06:20:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276991936.md) - [en](https://longbridge.com/en/news/276991936.md) - [zh-HK](https://longbridge.com/zh-HK/news/276991936.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276991936.md) | [繁體中文](https://longbridge.com/zh-HK/news/276991936.md) # NVIDIA's fourth-quarter sales reached a record of $68 billion, alleviating bubble concerns NVIDIA reported a 94% increase in fourth-quarter profits, with sales reaching a record high, helping to alleviate concerns about a potential artificial intelligence bubble that has swept the market in recent months. The chipmaker reported a net profit of $43 billion, up from $22.1 billion in the same period last year; sales were $68.1 billion, a 73% increase from $39.3 billion a year earlier, easily surpassing general expectations. Analysts surveyed by FactSet had previously predicted the company's net profit for the quarter would be $37.5 billion, with revenue of $66.1 billion. Data center hardware accounted for 91.4% of sales in the quarter, or $62.3 billion, with revenue growth in this segment slightly outpacing the overall sales growth of the company. NVIDIA CEO Jensen Huang stated during the earnings call on Wednesday, "Simply put, the way we compute has changed. In the new era of artificial intelligence, computing equals revenue. I am confident that we have reached a turning point," where generative AI is disrupting business models globally, and selling AI tools is beginning to generate real profits. As each quarter passes, the pressure on NVIDIA increases, as it must exceed Wall Street's expectations. "It is no longer enough for NVIDIA to just have a decent quarter," said the CEO of technology research and consulting firm Futurum Group. "They must deliver a perfect quarter." NVIDIA's gross margin has steadily increased over the past year, reaching 75% in the January quarter, up from 73% a year earlier, in line with analysts' predictions. In recent months, investor concerns about AI trades have fluctuated, leading to significant volatility in tech stocks. NVIDIA's stock price fell to a low of $170.94 in mid-December but has since rebounded to above $196. The largest buyers of NVIDIA chips include OpenAI, the developer of ChatGPT, Oracle, Microsoft, Meta Platforms, Google's parent company Alphabet, and Amazon. In recent months, investors have grown increasingly concerned about OpenAI's ability to secure funding and the intensifying competition from other chip designers. In January, reports indicated that NVIDIA's plan to invest up to $100 billion in OpenAI, announced last September, had been shelved. Instead, NVIDIA stated it would participate in OpenAI's latest funding round, with a reduced investment amount, reportedly around $30 billion. One factor that could influence NVIDIA's future is the shift from training AI models to inference, which is the process by which AI tools respond to queries. Training and inference require different types of computing, and thus different hardware. For years, NVIDIA has dominated the training market with its graphics processing units (GPUs)—powerful chips capable of executing billions of simple tasks simultaneously. As more tech companies apply AI tools to real-world scenarios, market demand is expected to shift from training to inference, which relies more on central processing units (CPUs), a simpler type of data center chip that is also easier for more companies to design Last week, NVIDIA announced a partnership with Meta, which includes the first large-scale deployment of CPUs not connected to server GPUs, indicating that customers like Meta require more inference computing infrastructure to run their AI tools and other applications. Jensen Huang stated, "It's important to understand that for our customers, inference capability is now equivalent to revenue. With the widespread use of AI agents and the ability to quickly generate the computing resources needed to run them, customers have realized that their capital expenditures on NVIDIA products can lead to faster growth." In an interview following the earnings report, the Chief Financial Officer stated that NVIDIA is not concerned about competition from custom chip designers, as the company's latest generation of servers, Grace Blackwell, offers the most efficient inference computing capabilities in the market ### Related Stocks - [NVIDIA Corporation (NVDA.US)](https://longbridge.com/en/quote/NVDA.US.md) - [T-REX 2X Long NVIDIA Daily Target ETF (NVDX.US)](https://longbridge.com/en/quote/NVDX.US.md) - [iShares Semiconductor ETF (SOXX.US)](https://longbridge.com/en/quote/SOXX.US.md) - [GraniteShares 2x Long NVDA Daily ETF (NVDL.US)](https://longbridge.com/en/quote/NVDL.US.md) - [Direxion Daily Semicondct Bull 3X ETF (SOXL.US)](https://longbridge.com/en/quote/SOXL.US.md) - [YieldMax NVDA Option Income Strategy ETF (NVDY.US)](https://longbridge.com/en/quote/NVDY.US.md) - [Direxion Daily NVDA Bull 2X Shares (NVDU.US)](https://longbridge.com/en/quote/NVDU.US.md) - [VanEck Semiconductor ETF (SMH.US)](https://longbridge.com/en/quote/SMH.US.md) - [The Technology Select Sector SPDR® ETF (XLK.US)](https://longbridge.com/en/quote/XLK.US.md) - [XL2CSOPNVDA (07788.HK)](https://longbridge.com/en/quote/07788.HK.md) - [XI2CSOPNVDA (07388.HK)](https://longbridge.com/en/quote/07388.HK.md) - [Direxion Daily NVDA Bear 1X ETF (NVDD.US)](https://longbridge.com/en/quote/NVDD.US.md) - [T-REX 2X Inverse NVIDIA Daily Target ETF (NVDQ.US)](https://longbridge.com/en/quote/NVDQ.US.md) ## Related News & Research - [Nvidia Still Top AI Pick With Massive Upside Ahead: Analyst](https://longbridge.com/en/news/279764436.md) - [LPU: Nvidia popularizes a new AI acronym](https://longbridge.com/en/news/279662346.md) - [Nvidia's $20B Groq Deal Draws US Antitrust Questions](https://longbridge.com/en/news/279978880.md) - [NVIDIA and Global Industrial Software Giants Bring Design, Engineering and Manufacturing Into the AI Era | NVDA Stock News](https://longbridge.com/en/news/279321742.md) - [Nvidia Asked by US Senators to Provide Details on Groq Deal](https://longbridge.com/en/news/279931631.md)