NVIDIA Corporation (NVDA) sees heightened investor optimism as new AI infrastructure deals and robust financial results fuel a rally in Wall Street sentiment. The company reports Q4 revenue of $39.3 billion, surpassing expectations and marking a 29% year-over-year increase.
- Q4 revenue reached $39.3 billion, a 29% year-over-year increase
- Gross margin expanded to 78.6% in Q4
- Secured $2.4 billion in new AI infrastructure contracts
- AI chip market share now 84% globally
- Consensus price target rises to $1,450 per share
- Blackwell Ultra architecture expected in Q2 2026
NVIDIA's stock climbed 7.3% in early trading following the announcement of three major enterprise AI partnerships, including a $2.4 billion contract with a multinational cloud provider to deploy next-generation data centers. The company also signed an exclusive chip supply agreement with a leading European telecom operator, securing long-term demand for its H200 and Blackwell GPUs. The latest earnings report revealed NVDA generated $39.3 billion in revenue for the fourth quarter, well above the $36.5 billion consensus estimate. Gross margin expanded to 78.6%, driven by higher utilization rates across data center deployments and strong pricing power in the AI accelerator market. Analysts note that the company’s AI chip share in the global market now stands at 84%, up from 72% in the same period last year. Wall Street analysts have upgraded their ratings across the board, with 24 out of 28 institutions now recommending a 'buy' or 'strong buy' rating. The consensus price target has risen to $1,450 per share, representing a 15% upside from current levels. Investment portfolios tracking AI and semiconductor exposure have increased their NVDA holdings by 12% month-to-date. Market participants are particularly focused on the company’s upcoming Blackwell Ultra architecture, set for commercial rollout in Q2 2026. Early benchmarks suggest a 3.2x performance improvement over current Hopper-based systems, reinforcing demand from hyperscalers and government entities seeking high-efficiency compute solutions.