Nvidia Delivers Upbeat Forecast to AI-Wary Market | Bloomberg Tech 2/26/2026

Strong metrics trigger bearish reaction

Nvidia forecast fiscal Q1 sales of $78 billion with mid-70% gross margins despite 100%+ pricing increases, yet the stock dropped 5% as investors sought a new catalyst beyond the Blackwell ramp.

Supply visibility extends to 2027

Management confirmed sufficient inventory and capacity to support growth through 2027, though high-end memory remains tight.

Revenue diversification accelerates

Growth increasingly comes from non-hyperscaler enterprise and sovereign customers, while networking gains share in markets where Nvidia lacks compute dominance.

China exclusion remains

The $78 billion sales forecast includes zero contribution from China data center revenues, meaning any geopolitical easing offers upside.

Robust product revenue growth

Snowflake forecast product revenue of $1.26 billion, up 27%, driven by seven nine-figure deals reflecting customer confidence in AI data infrastructure.

Coding agents drive efficiency

Customers using Snowflake Intelligence and Codex Gold integrations report 100x speedups on data pipelines, reducing multi-week projects to under an hour.

Privacy-first AI positioning

The company emphasizes it never uses customer data for model training, positioning itself as the secure 'single source of truth' for enterprise AI.

Paramount's strategic imperative

Paramount shares rose 11% as investors bet on its Warner Bros Discovery bid succeeding, which would create a scaled competitor owning 30% of linear TV and two major film studios.

Bidding war intensifies

Warner Bros Discovery's board is weighing an offer against Netflix's potential counter, with the process seeing eight price increases and a 63% premium over September's opening bid.

Divergent fundamentals

Warner Bros revenue declined 6% across shrinking businesses, while Paramount grew revenue 2% with streaming revenue up 17% driven by UFC content.