Chip manufacturer Nvidia projected first-quarter revenue exceeding market expectations, capitalizing on the ongoing investment from Big Tech in its artificial-intelligence processors.

The firm reported it had obtained sufficient chip inventory and capacity to satisfy demand for several upcoming quarters, aiming to ease worries that a supply shortage at its chip contractor TSMC was hindering its expansion. The company stated that the shortfall will impact its gaming division.

Nvidia's Chief Financial Officer Colette Kress mentioned during a conference call with analysts that the firm anticipates sales growth to surpass the $500 billion revenue projection for 2026 announced in October, although she did not specify a timeline other than indicating that the company expects growth in every quarter of calendar 2026.

Company shares increased by more than 3 percent in after-hours trading following the results, which came out 10 minutes later than anticipated.

"Our clients are eager to invest in AI computing - the engines driving the AI industrial revolution and their future expansion," states CEO Jensen Huang.

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The most valuable company globally anticipates first-quarter fiscal sales of $78 billion, give or take 2 percent, in contrast to analysts' average projection of $72.60 billion, as per data gathered by LSEG.

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The fourth-quarter results offer positive news for AI investors, who are assessing Nvidia's performance to determine if the massive sums of money that Big Tech is investing in data center infrastructure are yielding returns. Hyperscalers Alphabet, Microsoft, Amazon.com, and Meta Platforms project total capital spending to exceed $630 billion in 2026, primarily designated for data centers and processors.

Companies and governments are investing heavily in the competition to create the most advanced AI technology, or face the danger of lagging behind.

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Bob O'Donnell, chief analyst at TECHnalysis Research says, "It's clear from Nvidia's latest numbers and their forecast that concerns about an AI slowdown simply are not showing up yet. Interestingly, the data center revenues are diversifying across more than just the biggest hyperscalers. This suggests there is still growth opportunity in more places, highlighting the ever-expanding interest in ⁠AI compute."