Nvidia (NVDA 1.53%) is, by far, the dominant maker of artificial intelligence (AI) chips and related technology. Indeed, the AI revolution is largely being fueled by the company's AI-enabling hardware, software, and tools.
So, when large companies in the AI space report powerful demand for their AI-related products, this is a positive for Nvidia. That's because these companies are almost always Nvidia partners and/or customers – directly or indirectly.
This is the case with both Palantir Technologies (PLTR +1.25%) and Teradyne (TER 5.00%), which both reported great fourth-quarter results after the market close on Monday. Both stocks had substantial gains on Tuesday.
Image source: Getty Images.
Palantir's quarterly results
Palantir is an AI-powered data analytics company serving both government and commercial customers, and its growth – which was already powerful – accelerated in the quarter. It's an Nvidia partner and incorporates Nvidia's graphics processing units (GPUs) and other tech into its AI-driven platform.
NASDAQ: PLTR
Key Data Points
In the fourth quarter, Palantir's revenue soared 70% year over year to $1.41 billion. Growth was driven by U.S. commercial revenue skyrocketing 137% to $507 million and U.S. government revenue jumping 66% to $570 million. Adjusted earnings per share (EPS) surged 79% to 0.25.
Moreover, management provided 2026 revenue guidance of 61% annual growth.
The quarter's results and guidance easily beat Wall Street's estimates.
Palantir stock jumped 6.8% on Tuesday.
Teradyne's quarterly results
Teradyne's largest business is making testing equipment for semiconductors (or chips). Management attributed its robust results to strong demand for AI-related chips.
One of Teradyne's major customers is Taiwan Semiconductor Manufacturing (TSM), the world's largest chip foundry and Nvidia's primary chip manufacturing partner. This makes Nvidia kind of an indirect customer of Teradyne.
NASDAQ: TER
Key Data Points
In Q4, Teradyne's revenue jumped 44% year over year to $1.08 billion, driven by strong demand for its testing equipment for AI-related chips, both compute (the category that includes the GPUs that Nvidia designs) and memory (Nvidia buys memory chips for integration with its GPUs for its AI data center chips). Adjusted EPS soared 89% year over year to $1.80, crushing the $1.38 Wall Street had expected.
CEO Greg Smith said, "In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI."
Teradyne stock rocketed 13.4% on Tuesday.
Nvidia reports its quarterly earnings on Feb. 25
Nvidia is scheduled to report its fourth-quarter and full-year fiscal 2026 (ended in late January) results on Wednesday, Feb. 25, after the market close. (It generally releases its results at 4:20 p.m. ET, in my observation.) An earnings call with analysts is scheduled for 5 p.m. ET the same day.
For Q4, management guided for revenue of $65 billion, representing year-over-year growth of 65%. It also guided (albeit indirectly, through several inputs) for adjusted EPS of $1.50, representing 69% growth.
