Nvidia’s fourth-quarter earnings for fiscal 2026 exceeded expectations, reporting sales above $68 billion. This result alleviated concerns of an AI bubble, according to CEO Jensen Huang. The optimistic report boosted Nvidia’s stock nearly 2%, approaching $200, and lifted other major tech equities.
Nvidia’s earnings call on Wednesday exceeded all market expectations, with sales surging above $68 billion in the last quarter. The report calmed AI bubble fears and brought renewed optimism to the tech sector.
Nvidia stock climbed nearly 2% during the trading session and is now close to the $200 mark. Broader tech stocks, including Microsoft, Meta, Amazon, and Apple, also experienced an uptick.
CEO Jensen Huang stated in the upbeat earnings call that fears of AI being a bubble have ended. “I think the markets got it wrong,” he said while pushing back on those concerns.
He argued that AI will not cannibalize the software industry but rather utilize it more effectively. “Agentic AI will use software tools even more, boosting efficiency,” he said. The development has calmed tensions in the stock market.
The majority of traders took an entry position in February after being confident in Nvidia’s prospects. The company beat revenue expectations, putting the software industry on a positive track.
Traders are expecting Nvidia stock to climb above the $200 mark next due to the prevailing optimism. The market is now brimming with confidence following the strong financial results.
