Nvidia CEO Jensen Huang Says Markets Misjudged AI Impact as Company Posts Record Fourth-Quarter Results
SAN FRANCISCO, Feb 26, 2026: Nvidia Chief Executive Officer Jensen Huang said markets had underestimated the long-term impact of artificial intelligence on the software industry, as the chipmaker reported stronger-than-expected fourth-quarter earnings driven by surging demand for AI technologies.
Speaking to investors, analysts, and in an interview with CNBC, Huang said concerns about AI disrupting software companies were misplaced, emphasising that AI would enhance, rather than replace, existing platforms.
“I think the markets got it wrong,” Huang said, adding that software firms would develop specialised AI agents to improve efficiency and productivity. He noted that companies would continue relying on AI tools to process information and complete complex tasks more effectively.
AI Adoption Reaching Turning Point
Huang said artificial intelligence had reached a major inflection point, with rapid adoption of autonomous “agentic AI” systems capable of making decisions and performing tasks independently.
“AI is here, AI is not going to go back… AI is only going to get better from here,” he said during a conference call.
He highlighted growing global demand for AI-driven systems and cited the success of tools developed by companies like Anthropic and OpenAI as evidence that AI was delivering strong returns for both enterprises and consumers.
Huang added that AI was fundamentally transforming the software industry, creating new growth opportunities and revenue streams for companies adopting the technology.
Nvidia Reports Strong Revenue and Profit Growth
Nvidia reported a 73 percent year-on-year increase in fourth-quarter revenue, reaching $68.1 billion, compared with $39.3 billion in the same period last year.
Net profit nearly doubled to about $43 billion, or $1.76 per share, up from $22.1 billion, or 89 cents per share, reflecting robust demand for Nvidia’s AI chips.
The company’s data centre division remained its primary growth driver, generating a record $62.3 billion in revenue during the quarter, marking a 75 percent increase from the previous year.
Positive Outlook and Market Response
Nvidia forecast first-quarter revenue of approximately $78 billion, exceeding analysts’ expectations of $72.6 billion, signalling continued strong demand for its AI products.
Following the announcement, Nvidia’s shares rose more than 3 percent in extended trading, reflecting investor confidence in the company’s growth prospects.
Huang’s comments and Nvidia’s earnings reinforced expectations that artificial intelligence will remain a key driver of growth for the technology sector in the coming years.