NVDA Stock Today: February 26 – Hyperscaler Spend, Networking +263%
Nvidia earnings topped expectations, powered by booming AI demand and stronger networking. Nvidia (NVDA) guided Q1 revenue to $78B as data center revenue rose 75% year over year and networking jumped 263%. The Nvidia share price swung after the print, as traders weighed China-excluded outlooks and near-term supply. For Australians, this matters for tech sentiment on the ASX and for USD exposure in US portfolios. We unpack Nvidia guidance, data center revenue drivers, and what to watch next.
What powered the beat: data center and networking surge
Nvidia earnings showed AI demand is still strong, with data center revenue up 75% from last year as training and inference capacity expanded across major clouds. The quarter highlighted sustained GPU upgrades and larger cluster builds. Management pointed to resilient hyperscaler orders and broader enterprise pilots, confirming that AI workloads are now a core compute layer. CNBC reported the beat and robust AI-driven momentum.
Networking revenue surged 263%, reflecting rapid buildouts of high-speed interconnects that tie GPUs into efficient clusters. Strong InfiniBand and Ethernet demand followed larger rack-scale deployments and higher attach rates per node. This mix shift boosts system value per sale and lowers bottlenecks in training runs. It also diversifies growth beyond GPUs, which can help smooth cycles when chip supply is tight.
Nvidia earnings also showed steady hyperscaler spending outside China. Investors are watching China-excluded guidance and any impact from export controls. Near term, orders look broad-based across US cloud providers and select global platforms. The company flagged ongoing demand for inference and training, while customers test next-gen architectures. This backdrop supports continued data center revenue strength even as regional restrictions persist.
Outlook: guidance, supply, and manufacturing update
Nvidia guidance for Q1 revenue at $78B set a high bar, signaling another quarter of intense AI buildouts. The outlook implies stable orders from large customers and a growing enterprise funnel. Investors will gauge how much of that $78B comes from networking, as the mix can influence margins and delivery timing. Any commentary on China-excluded demand will also shape expectations for the mid-year run-rate.
Management acknowledged near-term supply constraints as lead times remain elevated. The Vera Rubin ramp is a key milestone to add capacity. Nvidia aims to diversify manufacturing with new activities in Arizona and Mexico to improve resilience and shorten logistics. These steps should support steadier allocations to top customers while reducing single-region risk across the supply chain.
Watch shipment timing, networking mix, and software attach. Lead times and component availability can pull revenue between quarters. Higher networking content supports cluster efficiency and total system spend. Software subscriptions and services may add incremental margin over time. China-excluded assumptions will remain a swing factor for Nvidia guidance updates, especially if policy or licensing rules change quickly.
What it means for Australian investors
Nvidia earnings often set the tone for global tech. The Sydney Morning Herald noted the ASX was set to open higher as Wall Street rallied on the print. Australian investors may see firmer sentiment across local tech and AI-exposed names, plus continued flows into global tech ETFs. Strong data center revenue also supports broader cloud capex narratives. SMH captured the upbeat setup.
Many local brokers offer US market access, but portfolios face AUD-USD currency risk. Consider whether to hedge currency. The Nvidia share price pays a small dividend, so returns are primarily growth-driven. Confirm W-8BEN status for US withholding, and note T+2 settlement. Set orders during US market hours for tighter spreads, and avoid chasing fast premarket swings.
Keep single-stock exposure disciplined, often 3% to 5% of a diversified portfolio. Use levels and volatility to plan entries. With ATR near 5.84, price moves can be swift. Traders may watch support near recent lows and resistance around prior highs. Consider staged buys and stop levels that reflect your risk budget and holding period.
Valuation, technicals, and risks
On valuation, the shares trade around a 48.54 P/E based on recent EPS. Analyst views skew positive: 3 Strong Buy, 67 Buy, 1 Hold, 1 Sell, for a 4.00 consensus. Our stock grade shows 82.68, an A with a BUY suggestion, while a separate company rating sits at B+ and Neutral. Together, they imply strong fundamentals with valuation and expectations to monitor.
The last close was $192.85, above the 50-day average of $184.80 and the 200-day of $173.19. RSI is 61.29 with a positive MACD, showing constructive momentum. Bollinger bands flag an upper area near 198.83 and a middle around 187.08, while ATR is 5.84. Traders may watch support near 187 and resistance toward 199 to 200.
Policy changes and export controls could tighten supply or restrict sales. Component shortages may delay deliveries. Customer concentration and large project timing can shift quarterly results. Competitive responses and custom silicon from major buyers remain an overhang. Any slowdown in hyperscaler budgets would test the pace of data center revenue growth.
Final Thoughts
Nvidia earnings reinforced that AI infrastructure demand is still strong. Data center revenue rose 75% and networking climbed 263%, while Nvidia guidance to $78B for Q1 set an ambitious path. For Australians, the takeaway is clear. Keep exposure sized, respect currency risk, and plan entries around support and volatility. Watch near-term supply, the Vera Rubin ramp, and any updates on China-excluded demand. Use a simple checklist before trading: confirm order type, review levels, set stops, and recheck position size. Strong momentum can reward discipline, but expectations are high, so stay nimble and data-driven.
FAQs
What were the main highlights from Nvidia earnings?
Nvidia earnings beat Q4 forecasts, driven by a 75% jump in data center revenue and a 263% surge in networking. Management guided Q1 revenue to $78B, citing resilient hyperscaler demand. Shares were volatile after the release as investors weighed China-excluded assumptions and near-term supply. The update confirmed that AI buildouts remain the primary growth engine across major cloud customers.
What does Nvidia guidance of $78B for Q1 mean for growth?
Nvidia guidance at $78B signals another quarter of intense AI infrastructure spending. It implies stable orders from large cloud customers and a growing enterprise funnel. Mix will matter. A higher share of networking could affect delivery timing, while software attach may lift margins over time. Investors will track lead times, China-excluded trends, and shipment cadence across quarters.
How can Australian investors buy NVDA and manage currency risk?
Australians can access NVDA through brokers that offer US trading. Complete a W-8BEN form, note T+2 settlement, and expect USD dividends to be small. Consider whether to hedge AUD-USD exposure, since currency moves can amplify or reduce returns. Use limit orders during US hours for better pricing, and avoid chasing premarket gaps after major news.
What risks could pressure the Nvidia share price from here?
Export controls and policy shifts could restrict sales. Component shortages can delay deliveries. Customer concentration and project timing may swing quarterly results. Competitive threats from other chipmakers or custom silicon could compress pricing over time. A slowdown in hyperscaler budgets would test growth in data center revenue and might lower order visibility for future quarters.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.