Nvidia reported record fourth-quarter revenue of $68.1 billion, up 73% year-on-year, with earnings per share of $1.62 beating the $1.53 consensus estimate as AI-driven demand continued to power data centre sales.
JPMorgan Chase raised its price target on the stock from $250 to $265 following the results, yet shares fell nearly 7% on February 26 from a session high of $197 to below $185 despite the earnings beat.
Data centre revenue reached $62.3 billion, accounting for 91% of total sales, while Q1 FY2027 guidance of $78 billion topped Wall Street’s $72.8 billion estimate and notably excluded any revenue contribution from China.
However, quarter-on-quarter growth is decelerating, with Q3 rising 22% over Q2, Q4 up 19.5% over Q3, and guidance implying roughly 14.5% sequential growth, signalling a slowdown in momentum even as absolute revenue continues to set records.
Revenue concentration remains a key risk, with Deepwater Asset Management’s Gene Munster estimating that around 70% of sales come from just eight companies, while CFO Colette Kress confirmed that the top five hyperscalers account for slightly over half of data centre revenue.
That level of dependency means even a 10–15% pullback in AI capital expenditure from a handful of large cloud customers could materially impact quarterly performance, a dynamic investors may be factoring into recent price weakness.
Despite institutions reportedly pouring $113 billion into NVDA shares in Q4 and insiders selling roughly $40 million in stock, the equity remains range-bound between $169 and $199, with technical indicators such as a bearish RSI divergence and a failed breakout near $195 suggesting cautious sentiment for now.