Bloomberg Intelligence Instant Reaction: Nvidia’s Upbeat Sales Forecast Shows AI Boom Remains Strong
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Feb 25, 2026 Mandeep Singh, Bloomberg Intelligence tech research chief who tracks margins and product mix. Ed Ludlow, Bloomberg Tech commentator versed in tech markets and AI infrastructure demand. They discuss Nvidia’s bullish revenue guide and data-center strength. They dig into margins, China exposure, supply constraints, and who beyond hyperscalers is buying GPUs.
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Nvidia's $78B Guide Confirms Strong AI Compute Demand
- Nvidia's fiscal Q1 revenue guide of about $78 billion signals AI compute demand remains exceptionally strong.
- The guide excludes China compute revenue and still handily beat Street estimates, showing broad, non-China driven demand.
Data Center Strength Shows Nvidia's Pricing Power
- Data center revenue of $62.3 billion and a 75.2% gross margin beat expectations, underscoring Nvidia's pricing power.
- Management said computing demand is growing exponentially and margins benefit from system and product mix, not just chips.
Hyperscalers Are Half The Story As Neoclouds Rise
- Nvidia disclosed hyperscalers were just over 50% of Q4 data center revenue, meaning the other half is diversifying toward neoclouds and enterprises.
- The company is selling systems and CPUs standalone, helping customers build private AI infrastructure beyond hyperscalers.