The Result That Boosted Wall Street: Inside Nvidia’s 20% Revenue Surge

Nvidia delivered a sharp 20% jump in revenue quarter-on-quarter, underscoring the sustained strength of artificial intelligence-driven demand across global markets.

For the latest reported quarter, the US chipmaker posted revenue of $22.1 billion, up from the previous quarter’s $18.1 billion and significantly higher on a year-on-year basis. The growth was powered almost entirely by its Data Center segment, which contributed over 75% of total revenue, cementing Nvidia’s pivot from gaming graphics to AI infrastructure.

Data Center revenue alone surged to approximately $18.4 billion, reflecting continued hyperscaler spending from major cloud providers building AI capacity. The company’s high-performance GPUs, particularly its Hopper architecture-based chips, remain central to large language model training and inference workloads.

Gross margins expanded sharply, touching the mid-to-high 70% range, compared with sub-70% levels a year ago. The expansion reflects tight supply, premium pricing power and favourable product mix, with AI accelerators commanding significantly higher margins than legacy gaming chips.

Operating income also more than doubled year-on-year, indicating operating leverage despite rising research and development investments. Nvidia continues to allocate billions toward next-generation AI hardware, software ecosystems, and networking capabilities.

Wall Street Reaction: AI Trade Back in Focus

The disclosure of NVIDIA’s fiscal performance acted as a massive catalyst for US equities, reigniting the "AI trade" across semiconductor and cloud-computing sectors. Following the announcement, NVIDIA (NVDA) shares climbed 3.5% in after-hours trading, further solidifying its status as a cornerstone of the global technology market. The company delivered a record-breaking $68.1 billion in quarterly revenue, a staggering 73% year-over-year (YoY) surge that comfortably surpassed the analyst consensus of $65.56 billion.

Market confidence was bolstered by a "double beat" in both top-line growth and profitability. NVIDIA reported a diluted EPS of $1.62, exceeding the projected $1.52 by a margin of 6.6%. Looking ahead, management’s forward guidance was equally aggressive, with next-quarter revenue forecasted at $78.0 billion ($\pm 2\%$). This suggests that the capital expenditure cycle for AI infrastructure is accelerating rather than plateauing.

NVIDIA’s market capitalization, which reached approximately $4.66 trillion in February 2026, reflects its vertical integration within the generative AI ecosystem. However, the internal revenue mix reveals a company scaling across multiple fronts:

• The Data Center Titan: This segment remains the primary engine of the business, generating $62.3 billion in revenue, an increase of 75% YoY and 22% sequentially. Demand is being driven by "Hyperscalers" (Meta, Microsoft, Alphabet, and Amazon), which now account for over 50% of total segment sales as they transition to Blackwell-architecture clusters.
• Gaming Resilience: Despite the shift in focus, the Gaming division achieved a record $3.8 billion in revenue, supported by a 30-42% annual growth rate. This was largely fueled by the global rollout of the GeForce RTX 50-series GPUs and a broader recovery in the PC hardware refresh cycle.
• Automotive and Robotics: While still a smaller portion of the total pie, this high-margin vertical reported $592 million in revenue, a 32% YoY increase. Growth is being steered by the NVIDIA DRIVE Thor platform and expanding integration with Tier-1 global automakers.

Capital Expenditure and Supply Constraints

The company acknowledged persistent supply constraints, particularly for advanced packaging technologies critical to AI chip manufacturing. Nvidia has been working closely with foundry partners to expand capacity, especially for high-bandwidth memory (HBM) integration. Capital expenditure commitments from cloud giants continue to remain elevated, suggesting sustained demand momentum into the next fiscal year.

Nvidia’s 20% revenue jump signals that the AI infrastructure buildout is far from peaking. As enterprises, governments, and technology firms expand generative AI deployments, the demand for high-performance GPUs remains structurally strong. For Wall Street, the result served as a reaffirmation that the AI cycle continues to be one of the most powerful drivers of earnings growth in global equities.

Also read: ED Attaches Anil Ambani’s ₹3,716Cr Mumbai Home in ₹40,000Cr Fraud Probe