One of the most-watched events of the quarter is happening in just a few hours: Nvidia (NVDA 1.46%) is set to report fourth-quarter and fiscal 2026 earnings. The report is scheduled for Feb. 25 after the market closes.
Why is this such a big deal? Nvidia is the leader in one of the world's highest-growth areas -- artificial intelligence (AI). The company dominates the AI chip market and has built out a portfolio of complementary products and services, too. This has resulted in explosive earnings growth, and Nvidia's visibility on AI advancements and trends makes it a bellwether for the entire industry.
Here's what to watch for in the upcoming report:
Image source: Getty Images.
1. The state of AI demand
We already have some clues about what to expect here. AI players from chip manufacturer Taiwan Semiconductor Manufacturing to cloud giants such as Alphabet spoke of soaring demand during their recent earnings reports.
But it will be important to hear comments from Nvidia regarding the demand it's seen in recent weeks, as well as demand ahead for the Rubin platform, set for release later this year. Demand is key because it gives us an idea of what revenue may look like in the quarters to come.
NASDAQ: NVDA
Key Data Points
2. Progress on exports to China
Last year, the U.S. blocked Nvidia and other makers of high-powered AI chips from the Chinese market. But recently, the U.S. granted Nvidia permission to sell its H200 chips to China -- as long as the company shares 25% of sales with the U.S.
Nvidia applauded the approval and said it was scaling up production of the H200 to accommodate potential demand. It still isn't clear if China has OK'd the arrangement or when exports of the H200 will begin. But CNBC last month quoted Nvidia chief Jensen Huang as saying he doesn't expect an official announcement, and instead expects purchase orders to start flowing in.
Business in China could be big for Nvidia as Huang has said that market's value could be about $50 billion annually. So any news about advancements here could be a catalyst for Nvidia's stock performance.
3. Further development plans and partnerships
Nvidia could be aiming for leadership in areas well beyond AI data centers. The company is working on a system for laptops integrating a central processing unit, graphics processing unit, and neural processing unit, according to The Wall Street Journal.
And Nvidia, several months ago, announced a partnership with Nokia focused on AI for telecom networks.
News on these or any new investments or partnerships sets the tone for Nvidia's growth down the road -- so it's a key point to watch during the earnings report and beyond.
