Artificial Intelligence (AI) giant **Nvidia** (NASDAQ: NVDA) reported strong fiscal 2026 fourth-quarter results on February 26, 2026, with adjusted earnings of **$1.62 per share** on **$68.1 billion** in revenue, surpassing analyst expectations of **$1.53 per share** on **$66.2 billion**. Despite issuing robust guidance of approximately **$78 billion** in revenue for the current quarter, exceeding the forecast of **$72.6 billion**, Nvidia’s stock plummeted nearly **5.5%** the following day.
Nvidia maintained a gross margin of **75.2%** and projected full-year gross margins to be around **75%**, indicating strong pricing power. However, the market’s response reflects growing uncertainty regarding AI investments, particularly among major tech players like **Microsoft**, **Meta Platforms**, **Alphabet**, and **Amazon**, who have collectively guided for **$650 billion to $700 billion** in capital expenditures in 2026 for AI infrastructure. Concerns linger about the sustainability of these investments and potential returns, leading to skepticism about the market’s outlook on AI.
