Why the Market Isn't Driving Up Nvidia Shares Despite AI Growth and Record Revenue
Australian Financial Review
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Details
- Date Published
- 26 Feb 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 26 Feb 2026, 06:45 am
Description
Investors are worried AI will smash software businesses, but concerns about too much spending on AI infrastructure for too little return haven’t gone away.
Summary
The article examines investor concerns surrounding Nvidia's substantial revenue growth due to AI advancements juxtaposed with apprehensions about the sustainable value of AI infrastructure investments. Despite Nvidia's remarkable fourth-quarter revenue increase of 73%, shareholders remain cautious, reflecting broader market hesitation influenced by fears of AI-induced disruption in the software sector. This article touches upon the economic implications of AI growth rather than the direct safety or existential risks associated with AI technology itself. It offers insight into market dynamics without directly addressing governance or policy frameworks related to AI safety or catastrophic risk reduction.
Body
TechnologyChanticleerPrint articleFeb 26, 2026 – 4.29pmThe biggest company in the world just produced the biggest quarterly revenue in its history – and investors didn’t really care.Nvidia’s fourth-quarter numbers, released on Wednesday night, were stunning in every sense of the word. Quarterly revenue climbed by a staggering 73 per cent (another record for the company) to $US68 billion ($95 billion), with gross margins rising to 75.2 per cent. Net income was a record $US39.6 billion, and guidance was well ahead of analyst expectations, with sales set to hit $US78 billion next quarter.Loading...James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.comSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreChanticleerEarnings seasonAINvidiaOpinionFetching latest articles