Fast Money Blog- 2/27/26
In a wild week on Wall Street, investors continued to show favor to conservative, dividend paying stocks, in spite of impressive Q4 earnings from NVIDIA. In other news, yesterday, after market close, Netflix dropped out of the bidding war for Warner Bros. leaving Paramount victorious. This was good news for NFLX shareholders, as investors thought the company was being financially undisciplined with its $82 billion offer for the acquisition. NFLX shares rose 9% in pre-market trading after the announcement.
Now Let’s Take A Close Look at NVIDIA Earnings
On Wednesday, February 25th, NVIDIA Corporation (NVDA) released its Q4 2026 earnings with record quarterly revenue of $68.1 billion, up 20% from the previous quarter and 73% year-over-year.
Remarkably, year-over-year revenue has now exceeded 50% for eleven straight quarters, dating back to mid-2023.
Moreover, Net income almost doubled to $43 billion in the quarter.
For fiscal 2026, revenue was $215.9 billion, up 65% from a year ago.
How NVDA’s Revenue Broke Down
Fourth-quarter data center revenue was a record $62.3 billion, up 22% from the previous quarter and up 75% from a year ago. The company now gets over 91% of sales from its data center unit, which houses its market leading artificial intelligence chips.
Within the data center business, Nvidia reported $10.98 billion in sales for the company’s networking parts, which are used to connect hundreds of graphics processing units. Those sales were up 263% year over year.
Full-year data center revenue rose 68% to a record $193.7 billion.
Looking ahead to Q1 2027, Nvidia anticipates revenue of $78 billion, plus or minus 2%. This figure does not include data center revenue from China, as the company still faces uncertainty from both the U.S. and Chinese Governments.
Nvidia also highlighted its upcoming release of Vera Rubin, the chipmaker’s next AI graphics processor. Vera Rubin is expected to deliver 10 times more performance per watt, providing energy efficiency at a time when data centers face major power constraints.
These earnings are clearly amazing, but the response from Wall Street was rather muted, as investors continue to worry about whether or not the company’s booming growth will continue over the next few years.
Moving On To Home Depot
On Tuesday, Feb. 24th, The Home Depot, Inc. (HD) Q4 2025 revenue came in at $38.2 billion, a decrease of $1.5 billion, or 3.8% year-over-year.
The company said some of the decline was due to Q4 2025 consisting of 13 weeks compared with 14 weeks for the prior year.
Sales for fiscal 2025 were $164.7 billion, an increase of 3.2% from fiscal 2024.
It has been a challenging year for the home improvement sector as a whole, with higher interest rates, lower housing turnover and economic uncertainty, affecting consumer spending.
However, the company is forecasting better results in Fiscal 2026, with total sales growth of approximately 2.5% to 4.5%.
In great news for HD shareholders, the company’s board of directors approved a 1.3% increase in the quarterly dividend to $2.33 per share, bringing the annual dividend to $9.32 per share.
If your goal is long-term wealth, hold shares of HD for the next 2 to 5 years.
Here’s what’s important to know
No matter how great the earnings, for the next 60 days I believe the Wall Street money machine will continue to be less interested in rewarding tech stocks and more interested in investing money in conservative companies like Travelers Companies, Inc. (TRV) and Walmart, Inc. (WMT). This is why we see a broadening out in major indexes like the Dow and the S&P.
Be smart. Be patient.
And continue to sell 3-week out of the money calls on your favorite trading stocks.
Tyrone Jackson
The Wealthy Investor