{"id":59130,"date":"2026-02-25T18:08:42","date_gmt":"2026-02-25T22:08:42","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/nvidia-posts-record-68-1b-q4-revenue-eyes-openai-partnership-amid-china-tariff-hurdles\/59130\/"},"modified":"2026-02-25T18:08:42","modified_gmt":"2026-02-25T22:08:42","slug":"nvidia-posts-record-68-1b-q4-revenue-eyes-openai-partnership-amid-china-tariff-hurdles","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-posts-record-68-1b-q4-revenue-eyes-openai-partnership-amid-china-tariff-hurdles\/59130\/","title":{"rendered":"Nvidia Posts Record $68.1B Q4 Revenue, Eyes OpenAI Partnership Amid China Tariff Hurdles"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) reported record Q4 FY2026 revenue of $68.1 billion, beating analyst estimates of $65.91 billion, driven by a 75% year-over-year surge in Data Center demand.<\/strong><\/li>\n<li><strong>The company is in advanced talks to finalize a strategic investment and partnership with OpenAI, though management cautioned there is no guarantee a deal will be signed.<\/strong><\/li>\n<li><strong>A massive $4.5 billion inventory write-off related to H20 chips dragged down FY2026 gross margins, highlighting the ongoing financial impact of shifting export regulations.<\/strong><\/li>\n<li><strong>The U.S. government has granted a limited license to ship H200 chips to specific China-based customers, but these shipments will be subject to a 25% U.S. import tariff.<\/strong><\/li>\n<li><strong>Nvidia signaled significantly higher capital expenditure for FY2027 after spending $6.1 billion in FY2026 to support the next phase of the AI infrastructure boom.<\/strong><\/li>\n<\/ul>\n<h2>Record Earnings Driven by &quot;King of Inference&quot; Blackwell<\/h2>\n<p>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) delivered a blockbuster Q4 FY2026 earnings report, posting <strong>revenue of $68.1 billion<\/strong>, a <strong>73% increase year-over-year<\/strong>. The results were anchored by the <strong>Data Center division<\/strong>, which generated <strong>$62.3 billion<\/strong> in revenue as hyperscalers\u2014accounting for over 50% of that segment\u2014continued to aggressively build out AI infrastructure.<\/p>\n<p>CEO Jensen Huang hailed the <strong>Grace Blackwell<\/strong> platform with <strong>NVLink<\/strong> as the &quot;king of inference,&quot; noting that demand for the new architecture remains exceptionally strong. While <strong>Gaming revenue<\/strong> also saw growth driven by Blackwell, the company warned of <strong>supply constraints<\/strong> in the gaming segment for Q1 FY2027 and beyond.<\/p>\n<h2>Strategic OpenAI Partnership and Capex Surge<\/h2>\n<p>In a move that could reshape the AI landscape, Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) confirmed it is <strong>finalizing talks for an investment and partnership with OpenAI<\/strong>. Reports suggest the deal could involve a <strong>$30 billion stake<\/strong>, potentially replacing previous infrastructure-focused commitments with a direct equity investment. However, the company noted in an <strong>SEC filing<\/strong> that there is no assurance an agreement will be reached.<\/p>\n<p>To fuel this continued expansion, Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) <strong>spent $6.1 billion in capital expenditures<\/strong> during FY2026. Management has already signaled that <strong>FY2027 capex will be even higher<\/strong>, as the company moves to diversify its supply chain beyond Asia into the <strong>U.S. and Latin America<\/strong> to mitigate geopolitical risks.<\/p>\n<h2>Regulatory Headwinds and the China Market<\/h2>\n<p>Despite the top-line success, Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) faced significant regulatory hurdles that impacted its bottom line. The company was hit with a <strong>$4.5 billion inventory charge<\/strong> tied to its <strong>H20 chips<\/strong>, resulting from overstock and purchase commitments that became difficult to fulfill under evolving export controls.<\/p>\n<p>While the U.S. government granted a license in <strong>February 2026<\/strong> allowing limited shipments of the <strong>H200 chip<\/strong> to specific customers in China, the victory is bittersweet. These shipments will face a <strong>25% U.S. import tariff<\/strong>, and Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) noted it has yet to record revenue under this new licensing program. <em>Market analysts remain cautious about the long-term viability of the China market given these escalating costs and political complexities.<\/em><\/p>\n<h2>FY2027 Outlook and Margin Recovery<\/h2>\n<p>Looking ahead, Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) provided a bullish <strong>Q1 FY2027 revenue outlook of $78.0 billion<\/strong>, plus or minus 2%. The company expects <strong>non-GAAP gross margins to hold steady at approximately 75.0%<\/strong>, even as it navigates higher input costs and the transition to new product cycles.<\/p>\n<p>The company also announced it will begin including <strong>stock-based compensation<\/strong> in its non-GAAP measures starting in FY2027. With <strong>$96.6 billion in free cash flow<\/strong> generated in FY2026, Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) remains in a dominant financial position to lead the &quot;next wave&quot; of the global AI build-out.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nvidia (NVDA) reported record Q4 FY2026 revenue of $68.1 billion, beating analyst estimates of $65.91 billion, driven by 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