Nvidia Dominates AI Chip Market: Record $215 Billion Revenue

The latest financial reports from Nvidia for the fourth quarter of fiscal year 2026 confirm its status as the undisputed leader of the technological revolution. The company recorded an astronomical sum of $215 billion in revenue, representing a multiple increase compared to previous years. The main driving force remains the huge demand for AI chips, which are essential for data centers and tech giants developing their own conversational systems. However, this success comes at a price – the video game segment recorded a significant decline, and the company warns of persistent shortages of gaming chips, which may last until the end of this year. The origins of Nvidia's power date back to the 1990s, when the company revolutionized the computer gaming market by introducing GeForce graphics processors. However, it was only in the last decade that it was discovered that the architecture of these chips is ideally suited for the parallel computations required by artificial intelligence. Simultaneously with Nvidia's success, the industry is seeing the first warning signs. Dell Technologies, a close partner of the chipmaker, reported a 39% jump in server sales, forecasting revenue in this segment at $50 billion. On the other hand, cloud service provider CoreWeave, despite beating revenue forecasts, recorded deepening losses, which is interpreted as an effect of massive investment spending on infrastructure. In Asian markets, Korean e-commerce giant Coupang disappointed investors, posting a loss after a major data leak, showing that not every tech company is riding the wave of optimism. 12 razy — more Nvidia earned from AI chips than from the video game segment Market analysts are divided in their assessment of the sector's future. Some experts believe Nvidia has ceased to be merely a stock company and has become a global barometer of the technology cycle. However, the 5.5% drop in the stock price immediately after the results were published suggests that the market has begun to discount negative scenarios. Among them are growing competition from proprietary chip designs from Google or Amazon and potential market saturation. The correction may also be the result of profit-taking by investors who fear that the pace of growth in AI spending is unsustainable in the long term. „AI has hit the tipping point. Demand is surging worldwide across companies, industries and nations.” — Jensen Huang