Nvidia’s Upbeat Sales Forecast Shows AI Boom Remains Strong

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Feb 25, 2026

Guest

Libby Cantrill

Guest

Ed Ludlow

Libby Cantrill, PIMCO public policy chief, offers quick takes on State of the Union market ripple effects. Ed Ludlow, Bloomberg Tech co-host and tech reporter, breaks down Nvidia’s booming sales guide and AI industry dynamics. They discuss Nvidia’s revenue surprise, supply and margin pressures, China compute questions, and how AI capex is reshaping suppliers and software winners.

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INSIGHT

AI Fatigue Came From Real Supply And Financing Constraints

'AI fatigue' led some investors to de-risk positions despite strong fundamentals, driven by constraints across chip capacity, packaging, power, substrates and data center financing.
Once a vendor is sold out, pause in supply can cause sideways stock trading.

INSIGHT

Nvidia's Revenue Guide Confirms AI Buildout Momentum

Nvidia guided fiscal Q1 revenue of about $78 billion, comfortably above the Street estimate of $72.8 billion, signaling continued AI compute demand.
Data center revenue beat at $62.3 billion and gross margin held at 75.2%, showing strong pricing and product mix on Blackwell systems.

INSIGHT

Margins Stay Elevated Despite Industry Memory Pressure

Nvidia guided next-quarter gross margin around 75% (±50bps) and non-GAAP operating expense ~$7.5 billion, implying sustained high hardware/software economics.
CFO commentary noted margins supported by Blackwell ramp and product mix, not memory headwinds.

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Nvidia Corp., the world’s most valuable company, gave another bullish quarterly revenue forecast, signaling that the massive build-out of AI computing remains on track.
Fiscal first-quarter sales will be about $78 billion, the chipmaker said in a statement Wednesday. That compares with an average Wall Street estimate of $72.8 billion, according to data compiled by Bloomberg.

“Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth,” Chief Executive Officer Jensen Huang said in the statement.
The outlook helped soothe concerns about a bubble in AI investments. Huang has repeatedly downplayed fears that the run-up in spending on artificial intelligence hardware isn’t sustainable. He argues that it will take years to replace the world’s installed base of older computers with machines that offer a leap forward in productivity.
But some investors had grown weary of that optimism and traded out of stocks like Nvidia. Wednesday’s report provides some evidence that near-term worries may be overblown.

Today's show features:

Bloomberg Tech Co-Host Ed Ludlow, and Jay Goldberg, Senior Analyst, Semiconductors & Electronics with Seaport Research Partners, break down Nvidia’s earnings report and outlook
Bloomberg Intelligence Senior Global Head of Technology Research Mandeep Singh reacts to quarterly earnings from Nvidia and Snowflake, and Bloomberg Intelligence Senior Technology Analyst Anurag Rana with analysis of earnings from Salesforce and the broader disruption to software companies amid concerns that AI will erode demand
Libby Cantrill, Managing Director and the head of public policy for PIMCO on market reverberations following President Donald Trump’s State of the Union address
Bloomberg News Miami Bureau Chief Dan Cancel on the report of Cuban forces killing four people who opened fire from a speedboat with Florida tags

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