Shares of chipmaking giant and ‘Magnificent Seven’ darling Nvidia have staged a strong comeback in April, breaking multiple record highs as investors regained confidence in the AI trade following blockbuster earnings by major Wall Street tech giants and upbeat capital spending commentary, which led to a robust recovery.
Nvidia, the world’s most valuable company, has recovered 24.5% so far in April. This comes after a prolonged stretch of stagnation, with the shares remaining largely flat from September 2025 through the end of last month. The stock last delivered a double-digit monthly gain in July 2025, when it surged 12%.
The reversal in sentiment also drove the stock to yet another record high of $216 in Monday’s trade. AI-related and other Big Tech stocks were under pressure earlier this year as investors grew uneasy about heavy spending without near-term visibility on faster revenue growth, stronger margins, and improved cash flows.
However, the latest earnings updates — including the recent results from Intel and earlier commentary from Taiwan Semiconductor Manufacturing Company (TSMC) and ASML Holding — have helped restore investor confidence, as demand for artificial intelligence chips remains robust.
Chip stocks have been among the biggest beneficiaries of the spending surge by tech giants to scale up their AI infrastructure. Alphabet, Microsoft, Amazon, and Meta Platforms are expected to spend more than $649 billion on AI infrastructure this year, boosting demand for chips, servers, storage, and networking equipment.
Nvidia Chief Executive Officer Jensen Huang has been one of the leading advocates for the broader adoption of AI across industries, consistently urging companies to experiment with how the emerging technology can improve business productivity and efficiency.
The company invested $70 billion in partners and customers in the fiscal year ended January to further strengthen the AI ecosystem.
Four megacap tech names — Alphabet, Meta Platforms, Microsoft, and Amazon — are scheduled to report on Wednesday after the bell, creating a single earnings window capable of moving the entire index complex.
Expectations remain high that the tech majors will confirm another round of heavy infrastructure investment, which typically flows directly into chip demand. When hyperscalers increase capital spending on AI, Nvidia tends to benefit almost automatically. That is why its stock often rallies ahead of key customer earnings.
Street bets on another blockbuster quarter as AI chip demand remains robust
The company is scheduled to report its fiscal first-quarter results next month, on 20 May, with analysts expecting another healthy set of numbers as most of its peers have already delivered impressive first-quarter performances. After all, the company’s most recent quarterly update was nothing short of exceptional.
It reported record revenue for the fourth quarter ended 25 January 2026, at $68.1 billion, up 20% from the previous quarter and 73% higher than a year ago. For fiscal 2026, revenue stood at $215.9 billion, marking a 65% jump year-on-year.
Revenue from the data centre segment, which accounts for more than 90% of total revenue, grew 22% sequentially and 75% YoY, driven by the two major platform shifts, accelerated computing and artificial intelligence. Full-year data centre revenue rose 68% to a record $193.7 billion.
Nvidia’s gross margin came in at 75% in fiscal Q4, up from 73% in the year-ago period. For the first quarter, the company expects revenue of $78 billion, plus or minus 2%, which would mark yet another sequential step higher from fiscal Q4.
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