NVDA Stock – Will company’s financial Result affect Nvidia stock price?

New York, 27 February 2026: The American stock market is showing a drop this morning. Concerns have increased in the market as the Producer Price Index (PPI) inflation figures came in higher than expected. In January, the PPI inflation was recorded at 2.9%, which is higher than the expected 2.6%. The core PPI inflation rose to 3.6%, higher than the expected 3.0%. These are the highest figures since July 2025. This has reduced expectations of a Federal Reserve interest rate cut and put pressure on the market.

Wall Street saw a mixed performance in yesterday’s session. The S&P 500 index fell 0.5% to close at 6,908.86. The tech-heavy Nasdaq Composite dropped 1.2% to 22,878.38, while the Dow Jones Industrial Average rose 0.03% to close at 49,499.20. In February, Nasdaq has fallen 2.5%, marking its biggest monthly loss since March 2025. The S&P 500 fell 0.4%, while the Dow rose 1.2%.

Futures are showing a dip this morning. Dow Jones futures fell 500 points or 1.2%, S&P 500 futures are down 0.9%, and Nasdaq 100 futures dropped 0.9%. This decline is mainly due to inflation figures and weak performance from tech stocks like Nvidia (NVDA). Global markets are also facing pressure, with S&P 500 futures down 0.9%.

Impact of Nvidia’s financial results

NVIDIA Corporation (NVDA), the world’s leading AI chip maker, has shocked the market with its fourth-quarter (Q4 FY2026) financial results. The company reported a record $68.1 billion in revenue, up 73% from last year and 20% from the previous quarter. The data center unit’s revenue surged 75%, contributing the most. Net income was $42.96 billion, up 94% from the previous year. The company’s gross margin reached 75%.

For the next quarter (Q1 FY2027), the company has estimated revenue of $78 billion (+/-2%), which is expected. Still, even though these results were better than expected, the stock fell 5.5% to close at $184.89. This was because the market had already priced in high expectations, and there was a ‘buy the rumour, sell the news’ reaction. Yesterday’s session saw the stock hit a high of 194.29 and a low of 184.32, with a trading volume of 359 million shares.

Nvidia’s results definitely affect stock prices, as earnings reports directly impact stock movements. This time, there was a drop despite good results, reflecting market expectations. For the full year, the company recorded $215.9 billion in revenue and $117 billion in net income, a 65% and 58% increase respectively.

Wall Street analysts’ guess

Wall Street analysts are optimistic about Nvidia’s future. Robert W. Baird has set a price target of 275 to 300 dollars with an ‘outperform’ rating. The average price target is 271.32 dollars, indicating a 47% increase from the current price. Three analysts have given a ‘strong buy’, 47 have ‘buy’ and two have given a ‘hold’ rating. One analyst has set a target of 352 dollars. Rosenblatt has set a target of 300 dollars. These forecasts are based on growth in the AI sector.

The wide impact of the market

The decline in the US market is affecting the global markets. Asian markets closed mixed, while European stocks are up 0.1%. Tensions between Iran and Israel and concerns in the AI sector are rising. Last year, Nvidia benefited from the AI boom, but now there are competition and supply chain issues.

Interest rates in the domestic market have fallen by 6%, which is good for the housing sector. The Kansas Fed production index has risen to 10. Still, there is caution in the market. Investors should pay attention to inflation and geopolitical events.

(Source: Based on various economic reports and analyses. This is just for information, not investment advice.)