February 26, 2026 – On Wednesday after the U.S. stock market closed, NVIDIA unveiled its financial results for the fourth quarter, once again surpassing market expectations.
According to the earnings report, NVIDIA’s total revenue for the quarter reached 68.1billion,outperformingthemarket′santicipated65.684 billion. This represents a significant 73% year-on-year increase from the $39.331 billion recorded in the same period last year.
The company’s core data center business was a major contributor, generating 62.3billioninrevenue,whichalsoexceededtheexpected60.62 billion and marked a robust 75% year-on-year growth.
As a key AI player in the eyes of Wall Street, NVIDIA continued its strong performance this quarter, with revenue consistently beating estimates. This positive momentum drove its stock price to surge by up to 3% in after-hours trading.
However, the market’s focus soon shifted to potential risks associated with its business structure, causing the stock price to retreat somewhat.
Notably, the earnings report revealed that over 91% of NVIDIA’s revenue came from its data center business, indicating a high dependence on demand for AI chips. Additionally, the company’s CFO disclosed that approximately half of the data center sales were attributed to a small number of hyperscale customers, highlighting a high level of demand concentration.
This business structure has raised concerns in the market. On one hand, the high customer concentration means that the company’s business is heavily reliant on a few major clients. On the other hand, there are also worries about the potential for circular trading risks similar to those seen during the dot-com bubble between NVIDIA and large tech companies, adding uncertainty to its future growth prospects.
Overall, while NVIDIA’s current performance remains strongly supported by the wave of investment in AI infrastructure, the issues of a single growth structure and high customer concentration have become new concerns for investors.
