Nvidia Reports Record Earnings Amid Stock Decline
Nvidia (NASDAQ: NVDA) reported record revenue of $68.1 billion for its fiscal Q4 2026, a 73% increase year-over-year, and adjusted earnings per share of $1.62, up 82%. Despite beating analysts’ expectations, the stock fell over 5% during early trading, contributing to declines in the S&P 500 and Nasdaq Composite, which were down 1.2% and 2%, respectively.
Concerns surrounding AI demand, revenue concentration—where 40% to 50% of sales come from major clients like Microsoft, Meta, Amazon, and Alphabet—and rising memory chip prices, which have surged 80% to 90% in recent months, are weighing heavily on investor sentiment. Nvidia represents 13.5% of the Nasdaq-100 and 7.4% of the S&P 500, making its stock movements significant for overall market performance.
The company’s outlook for Q1 revenue stands at $78 billion, exceeding estimates by $6 billion. However, pressures related to market volatility and supply chain issues have left investors cautious about the future trajectory of Nvidia’s stock.
