they crushed it

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The results are in. And they are good. Let me break it down simply for you.

🤖 Nvidia Crushed It. Again.

Nvidia just reported its Q4 earnings and it beat Wall Street on every single metric that matters.

Revenue came in at a record $68.1 billion. Wall Street was expecting $65.8 billion. That is a $2 billion plus beat. Earnings per share hit $1.62 versus the $1.52 expected. And for the full year, Nvidia did $215.9 billion in revenue up 65% from last year. Let those numbers sink in for a second. 😮

The engine driving all of this? AI chips. Their data center business alone brought in $62.3 billion for the quarter. That is 75% growth compared to a year ago. Over 91% of Nvidia's entire revenue now comes from data centres powering the AI revolution.

📈 Next Quarter's Guidance

Here is what got Wall Street excited the most. Nvidia guided for $78 billion in revenue for the next quarter. The market was only expecting $72.5 billion.That is a massive beat on guidance.

It tells you demand is not slowing down. In fact Jensen Huang said on the call that "computing demand is growing exponentially…. the agentic AI inflection point has arrived." Enterprise adoption of AI agents is accelerating fast and customers are racing to buy more compute.

Pete's Take 🛡️: This is the quarter that silences the AI bubble talk. At least for now. When Meta, Google, Microsoft, Amazon are collectively planning to spend close to $700 billion on AI infrastructure this year and your chips are still sold out, that is not a bubble. That is a structural shift in how the world computes.

🤔 So Why Didn't The Stock Go Through The Roof?

Nvidia stock rose about 2% to 3% in after hours trading but gave back some of those gains. Not exactly a strong reaction for a company that just smashed records.

Here is why. The market already expected a big beat. When expectations are sky high, excellent results is no longer a surprise. The real debate now is not about 2026. It is about 2027 and 2028. Are we in the start of AI spending or the last? That answer determines how you value Nvidia going forward.

Also worth noting that China remains a zero in Nvidia's guidance. Beijing has blocked H200 chip imports. If that ever opens up, it is pure upside that is not priced in at all. Jensen has said China alone could have been a $50 billion annual opportunity.

💡 What This Means For Everyday Investors

One. The AI infrastructure buildout is real and still accelerating. Companies that supply the picks and shovels of this revolution — chips, networking, data centre components — remain well positioned.

Two. The smarter move is to look at who else benefits from this spending wave. AMD just signed a massive deal with Meta. Networking companies are seeing explosive growth. The ecosystem around AI is enormous.

Three. If you do own Nvidia, this report confirms the thesis is intact. Hold your position with confidence.

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Happy Hunting!

Pete
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🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.