OP Wire 2/27 (OP – Lite)

Nvidia (NASDAQ:NVDA) once again proved why it remains the leader in AI-driven growth, reporting fourth-quarter results that topped Wall Street expectations and delivering strong revenue guidance for the upcoming quarter.

For the three months ending Jan. 26, Nvidia posted:

• EPS: $0.89 (vs. $0.84 expected)
• Revenue: $39.3 billion, a 78% increase year-over-year (vs. $38.16 billion expected)
• Data Center Revenue: $35.6 billion (vs. $34.1 billion expected), up 16% from the previous quarter

The company also provided bullish guidance, forecasting first-quarter revenue of $43 billion, surpassing analyst expectations of $42.05 billion. Nvidia’s gross margin is expected to be 70.6%, with CFO Colette Kress noting that margins will be in the low-70s during the Blackwell AI supercomputer ramp-up but could improve to the mid-70s later this year.

The Blackwell AI Boom

CEO Jensen Huang emphasized that post-training AI models require significantly more computing power—an area where Nvidia is leading the charge. The Blackwell AI chips are designed for this next evolution of AI, and Nvidia is seeing strong early demand, securing billions of dollars in sales in its first quarter of production.

Huang also pointed out that the next era of AI is on the horizon, calling out key trends:

• Agentic AI (AI models that act independently)
• Physical AI (AI-driven robotics and automation)
• Sovereign AI (Nation-state AI models)

Competition from DeepSeek?

Recent concerns over Chinese AI firm DeepSeek and its low-cost AI models briefly pressured Nvidia stock. Some analysts worried that these cheaper models could lead to a decline in AI spending, as DeepSeek’s AI costs far less to train than Western counterparts. However, Nvidia’s record-breaking revenue and demand outlook suggest otherwise—post-training AI models require far more computational power, keeping Nvidia at the center of the AI revolution.

Market Movers

• Bath & Body Works (BBWI) shares fell after a weaker-than-expected Q1 forecast.
• eBay (EBAY) dropped 8% after soft revenue guidance overshadowed an earnings beat.
• Ferrari (RACE) slipped after Exor sold a 4% stake.
• Ibotta (IBTA) plummeted 40% after disappointing guidance.
• Mara Holdings (MARA) jumped on strong Q4 revenue.
• Nutanix (NTNX) soared on an upbeat full-year revenue outlook.
• Papa John’s (PZZA) ticked higher after a solid Q4 earnings beat.
• Paramount Global (PARA) dropped after missing Q4 estimates.
• Salesforce (CRM) fell after providing weak revenue guidance.
• Snowflake (SNOW) surged 10% after a strong product revenue outlook.
• Vistra (VST) gained after reporting better-than-expected Q4 earnings.

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