TLDR
- NVIDIA drops as Palantir and Teradyne see big gains in AI-driven earnings.
- Palantir and Teradyne outperform, while Nvidia faces a stock decline.
- Strong Q4 boosts Palantir and Teradyne, leaving Nvidia behind.
- AI stocks soar as Nvidia’s earnings report looms, showing market shifts.
- NVIDIA sees a decline as Palantir and Teradyne capitalize on AI growth.
NVIDIA Corporation (NVDA) has seen a sharp decline in its stock price, falling 3.80% to $173.49 at 11:47 a.m. EST. This drop is part of a broader trend, with the stock price steadily decreasing since the morning, hitting a significant dip around noon. The semiconductor giant, known for powering the AI revolution with its GPUs and related technologies, faces a tough period despite the overall strength of the AI sector.
Palantir’s Strong Performance Drives Stock Growth
Palantir Technologies (PLTR) reported a remarkable surge in its quarterly results, showcasing a 70% year-over-year revenue increase to $1.41 billion. This growth was fueled by a 137% spike in U.S. commercial revenue, which reached $507 million, and a 66% rise in government revenue, hitting $570 million. Adjusted earnings per share (EPS) jumped by 79%, marking a substantial growth in the company’s financial performance.
The strong performance drove Palantir’s stock up by 6.8% on Tuesday, reflecting investor confidence. The company’s AI-powered data analytics platform, which integrates Nvidia’s GPUs and other technologies, has played a key role in its success. With this positive growth trajectory, Palantir has projected a 61% increase in revenue by 2026.
Teradyne Capitalizes on Strong AI Chip Demand
Teradyne (TER) also reported a stellar quarter, with revenue surging 44% year-over-year to $1.08 billion. This growth was mainly driven by strong demand for AI-related chips, particularly in testing equipment for both compute and memory categories. Teradyne’s adjusted EPS skyrocketed by 89%, reaching $1.80, exceeding Wall Street’s expectations of $1.38.
The company’s success is tied to its work with major customers like Taiwan Semiconductor Manufacturing (TSM), Nvidia’s chip manufacturing partner. Teradyne’s stock soared by 13.4% on Tuesday, reflecting robust investor optimism. With AI chip demand continuing to rise, Teradyne expects steady growth across all its businesses in 2026, particularly in the AI-driven compute sector.
NVIDIA’s Upcoming Earnings Report Could Shift Sentiment
NVIDIA is scheduled to report its fourth-quarter and full-year fiscal 2026 results on February 25, 2026, after the market close. The company has already guided for a revenue of $65 billion, marking a 65% year-over-year increase. Nvidia projects an adjusted EPS of $1.50, reflecting a 69% growth compared to last year.
Nvidia remains a major player in the AI and semiconductor industries. However, its stock performance may depend on how the upcoming earnings report aligns with market expectations. As competitors like Palantir and Teradyne continue to thrive, Nvidia’s financial performance will play a crucial role in determining its standing within the sector.
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