Nvidia has reported its first annual revenue surpassing $200 billion, reinforcing its growth in the AI sector despite mixed responses from the stock market.
Nvidia, a leading player in the AI market, has made headlines by exceeding $200 billion in annual revenue for the first time, reflecting a robust growth trajectory amid global interest in artificial intelligence. On a quarterly basis, Nvidia reported a staggering $68.1 billion in revenue for Q4 of FY2026, marking a 73% increase compared to the same quarter last year and surpassing Wall Street's projections. This growth is primarily driven by the data center segment, which saw a 75% year-over-year revenue increase, showcasing Nvidia's dominance in providing AI accelerators to big tech companies.
The latest financial results come at a time when there are significant concerns in the market about over-investment in artificial intelligence, with investors wary of potential pitfalls associated with the massive capital deployment by large tech firms. Nvidia's impressive sales figures directly counter predictions of a peak in AI investments, a narrative that has gained traction among analysts amid fears that the AI hype could lead to a market correction. The company's Chief Financial Officer, Colette Kress, expressed confidence in sustaining growth, predicting that the next quarter's revenue could exceed $78 billion, should current trends persist.
Despite Nvidia's strong performance, the mixed response from the US stock market contrasts sharply with the positive reception in Korea, indicating regional variations in investor sentiment. While the company continues to project prosperity in AI infrastructure and applications, the ongoing discussions about regulatory challenges, particularly regarding exports of AI chips to China, remain a point of concern. Nvidia aims to navigate these challenges while maintaining its growth trajectory, attesting to its significant role in shaping the future of AI technologies and products.
