Nvidia recently reported robust fourth-quarter results, with revenue soaring to a record $22.1 billion, a significant 265% increase year-over-year. This impressive growth was largely fueled by its data center segment, which saw a 409% rise in revenue to $18.4 billion. The company's strong performance underscores its pivotal role in the expanding global AI infrastructure and suggests continued high spending in the AI sector. CEO Jensen Huang also declared that the 'ChatGPT moment' has arrived for physical AI, signaling major advancements in robotics and automation.
In contrast to Nvidia's success, enterprise AI software maker C3 AI faced considerable challenges. The company reported a wider-than-expected loss for its fiscal third quarter and issued a fourth-quarter revenue forecast significantly below analyst expectations. C3 AI also announced a 26% workforce reduction and other cost-cutting measures, citing a high cost structure and organizational issues. Despite some business wins in federal, defense, and aerospace segments, the company's stock price saw a sharp decline.
The broader impact of AI on the economy is becoming increasingly evident. Artificial intelligence capital expenditures and the 'wealth effect' from surging tech stock gains, including those from Nvidia, are now driving approximately one-third of U.S. GDP growth. This highlights the significant influence of AI investment and market confidence on economic expansion. Companies like Micron Technology, with a 50% stock increase in 2026 due to high-bandwidth memory chips, and Silicon Motion Technology, providing essential SSD controllers, are also benefiting from the AI boom.
Beyond hardware, generative AI is a key investment area for global banking firm HSBC, which plans to leverage the technology for employee assistance, process improvements, and enhancing customer experience. Currently, 85% of HSBC employees have access to generative AI tools, leading to productivity gains like engineers patching code five times faster. While companies like Alphabet (Google) and Salesforce are recognized in the AI space, market sentiment suggests a diversified investment approach is crucial given the mixed opinions on the sector's long-term sustainability and valuation.
Key Takeaways
- Nvidia reported record fourth-quarter revenue of $22.1 billion, a 265% increase year-over-year, primarily driven by its data center segment.
- Nvidia's data center revenue reached $18.4 billion, up 409% from the previous year, reinforcing its central role in AI infrastructure.
- Nvidia CEO Jensen Huang announced the 'ChatGPT moment' for physical AI, indicating significant advancements in robotics and automation.
- C3 AI experienced a sharp stock drop after reporting wider losses, missing revenue forecasts, and cutting 26% of its workforce.
- AI capital expenditures and tech stock gains, including Nvidia's, are contributing approximately one-third of U.S. GDP growth.
- Micron Technology's stock increased 50% in 2026 due to its strong position in high-bandwidth memory (HBM) chips vital for AI applications.
- Silicon Motion Technology is highlighted as an AI stock gem, providing essential SSD controllers for AI infrastructure with high sequential revenue growth.
- HSBC is heavily investing in generative AI, with 85% of its employees having access to AI tools for process improvements and customer experience.
- Diversified investment in AI is recommended due to market uncertainty, despite strong performances from individual companies.
- Salesforce was noted as a stock mover, reflecting market reactions to broader AI sector news.
C3 AI shares drop on missed earnings and lower sales forecast
C3 AI's stock price fell sharply after the company reported a wider loss and lower revenue for its fiscal third quarter ending January 31. The artificial intelligence software maker also issued a fourth-quarter revenue forecast that was significantly below analyst expectations. This comes as the company faces declining revenue and continued operating losses. C3 AI did highlight some business wins, including deals with the U.S. Department of Agriculture and Exxon Mobil Corp., and saw growth in its federal, defense, and aerospace segment. The company's founder and CEO, Tom Siebel, stepped down due to health issues.
C3.ai stock falls after missing guidance and cutting jobs
C3.ai shares dropped after the enterprise AI software company announced a larger-than-expected loss for its fiscal third quarter and provided a revenue forecast below what analysts predicted. The company expects lower revenue for the full fiscal year and is implementing cost reductions, including workforce reductions. While C3.ai faced regional sales challenges, federal bookings saw significant year-over-year growth. The company reported a net loss for the quarter, with revenue increasing but future performance obligations decreasing.
C3 AI cuts 26% of staff, posts wider loss
C3 AI's stock price fell significantly after the company announced it was cutting 26% of its workforce and reported a larger loss than expected for the third quarter. CEO Stephen Ehikian stated the company's cost structure was too high and it was not organized correctly. The restructuring plan also includes a 30% reduction in non-employee costs. C3 AI anticipates fourth-quarter revenue to be much lower than analyst estimates, with a wider expected operating loss. The company has seen a dramatic decrease in its stock price since going public.
Nvidia earnings boost markets amid AI spending debate
Nvidia reported strong fourth-quarter results with revenue up 73% year-over-year, largely driven by its data-center segment which saw a 75% increase in sales. This performance reinforces Nvidia's key role in the global AI infrastructure buildout. The company's net income nearly doubled, and gross margins remained strong. Nvidia's guidance for the first quarter of fiscal 2027 suggests continued sequential growth, indicating resilient AI spending. These results helped lift semiconductor shares and broader equity markets.
Nvidia's record $68 billion sales beat bubble fears
Nvidia announced record fourth-quarter revenue of $22.1 billion, a 265% increase year-over-year, surpassing analyst expectations. The company's data center segment, crucial for AI chips, generated $18.4 billion in revenue, up 409% from the previous year. CEO Jensen Huang highlighted strong demand for AI chips and efforts to expand capacity. Despite strong results, Nvidia's stock saw a slight dip in after-hours trading, possibly due to valuation concerns or competition. The company's performance suggests continued growth in the AI sector.
AI spending and tech stocks drive one-third of US GDP
Artificial intelligence capital expenditures and the 'wealth effect' from tech stock gains are now driving about one-third of U.S. GDP growth, according to Pantheon Macroeconomics. AI capex accounted for nearly a fifth of GDP growth in the fourth quarter of 2025. Additionally, the increase in value of tech stocks like Nvidia has boosted consumer spending. Analysts suggest the economy could be vulnerable if investor confidence in AI falters, leading to a pullback in stock prices and investment. While AI is boosting productivity in some sectors, it is not yet significantly replacing workers.
Construction stock Construction Partners rides AI wave
Construction Partners (ROAD), a company in the heavy construction industry, is showing potential for a breakout, partly due to its AI-enabled path. While Nvidia and Alphabet are well-known AI stocks, Construction Partners is also gaining attention. The company is positioned to enter a new buy zone, indicating positive investor interest in its AI-assisted strategies.
Silicon Motion Technology: A hidden AI stock gem
Silicon Motion Technology, a smaller company with a market cap below $5 billion, is highlighted as a promising AI stock. The company provides SSD controllers essential for memory storage in AI infrastructure, addressing a key constraint for AI workloads. Despite a recent price drop, Silicon Motion Technology shows high sequential revenue growth and rising margins, indicating it's gaining market share. Its smaller size compared to competitors like Micron suggests greater potential for growth.
Nvidia CEO: Physical AI's 'ChatGPT Moment' is here
Nvidia CEO Jensen Huang announced that the 'ChatGPT moment' for physical AI has arrived, signaling a major advancement in robotics and automation. This means AI is set to transform how robots interact with the physical world, moving beyond digital tasks. This breakthrough, enabled by AI advancements in areas like large language models and sensors, could lead to widespread use of AI-powered robots in various industries. This development presents significant opportunities for companies involved in AI development and robotics.
Micron Technology stock up 50% in 2026
Micron Technology Inc. has seen its stock price increase by 50% in 2026, becoming a significant player in the artificial intelligence sector. The memory chip maker's success is due to its strong position in providing high-bandwidth memory (HBM) chips, which are vital for AI applications. Micron's strategic investments in HBM technology and its production scaling have allowed it to meet the growing demand for AI components. Despite a competitive market, Micron has secured a notable niche, making it an attractive investment in the AI space.
HSBC names generative AI a top investment area
Global banking firm HSBC has identified generative AI as a key investment area, planning to use the technology for employee assistance, process improvements, and customer experience enhancement. HSBC CEO Georges Elhedery stated that generative AI is receiving the most investment in new technology. Currently, 85% of HSBC employees have access to generative AI tools, and the bank is exploring its use in redesigning processes like fraud detection and credit applications. The bank is also seeing productivity gains, such as engineers patching code five times faster.
Stock movers: Nvidia, C3.ai, Salesforce and more
Nvidia's strong fourth-quarter earnings report failed to sustain its stock price momentum. Other companies mentioned as stock movers include Sandisk, Salesforce, C3.ai, IonQ, Nutanix, and Trade Desk. The article focuses on the market's reaction to Nvidia's results and how they influenced trading for other stocks.
Investing in AI: Diversify amid market uncertainty
Investing in AI presents challenges as Wall Street has mixed opinions on the sector's future. Despite Nvidia's record-breaking earnings, its stock performance has been mixed, reflecting broader market uncertainty about AI's long-term sustainability and valuation. Experts suggest that while AI touches many aspects of life and business, a diversified investment approach is crucial for individual investors. The key takeaway is to diversify investments rather than making large bets on a single AI narrative, acknowledging that both optimistic and pessimistic views on AI exist.
Sources
- C3 AI shares plunge as earnings miss, shrinking sales and weak outlook rattle investors
- C3.ai shares fall on missed guidance, regional sales shortfalls, and workforce reductions
- C3 AI shares plummet as company cuts 26% of workforce, posts wider loss than expected
- Nvidia Earnings Results Steady Markets as AI Spending Debate Intensifies
- Nvidia Beats Back Bubble Fears With Record $68 Billion in Sales in Fourth Quarter
- AI capex and the ‘wealth effect’ from tech stocks (like Nvidia) now drive one-third of U.S. GDP, top analysts say
- On The Road To A Breakout: Sector Leader Paves AI-Enabled Path
- 1 Top Artificial Intelligence Stock to Buy Right Now
- Jensen Huang Says the "ChatGPT Moment" for Physical AI Has Arrived. Here Are 2 Stocks to Buy for 2026.
- This Under-the-Radar AI Stock Is Already Up 50% in 2026
- HSBC names generative AI a leading investment area
- These Stocks Are Today’s Movers: Nvidia, Sandisk, Salesforce, C3.ai, IonQ, Nutanix, Trade Desk, and More
- How to Invest in AI When Wall Street Can’t Make Up Its Mind
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