TCS to Infosys, HCL Tech: Nifty IT jumps 2% after AI Chipmaker Nvidia post strong Q4 earnings

Indian IT stocks including Infosys, TCS, HCL Tech will be in focus on Thursday, February 26 after artificial intelligence (AI) chipmaker Nvidia delivered another exceptionally strong quarter on Wednesday, reinforcing its dominant position in the global AI ecosystem even as investors debate whether the current AI boom is sustainable or overheated.

Nifty IT jumps 2% to its day's high of 31,112.20. However, the index has been under pressure in recent months amid AI-led disruption concerns. IT fell 19% in past 1 month, 17% in 3 months, and over 20% in past 1 year.

Today was teh second straight session of gain for the IT index. It has risen 3.2% in 2 sessions.

All Nifty IT constituents were trading in the green. Persistent Systems was the top gainer, rising 3% followed by Tech Mahindra, which advanced over 2%. Meanwhile, L&T Tech, Infosys, Mphasis, LTI Mindtree, Coforge, HCL Tech, and TCS added over 1% each. Wipro was up 0.5%.

Nvidia Q4 results

Nvidia reported quarterly results that comfortably exceeded Wall Street expectations, driven by continued strong demand for its AI-focused chips. Revenue for the quarter touched a record $68.1 billion, signalling that spending on AI infrastructure by global technology companies remains robust.

The topline marked a 73% increase compared with the same quarter last year and came well above the Street’s estimate of $65.7 billion. For investors, this reinforced that the massive AI-led technology buildout — in which Nvidia’s chips play a critical role — is still firmly underway.

Profitability remained equally strong. Net income for the quarter more than doubled year-on-year to $42.96 billion, highlighting Nvidia’s operating leverage and pricing power.

Although the stock initially rose after the results, those gains were later erased as some investors booked profits following the recent rally to end 1.57% high at $195.88.

The November–January period once again surpassed analyst projections, continuing a trend Nvidia has maintained for several years. Since its high-performance chips became the preferred choice for training and running advanced AI models around three years ago, the company has repeatedly delivered earnings ahead of market expectations.

For the fiscal fourth quarter, Nvidia reported profit of nearly $43 billion, translating into earnings of roughly $1.76 per share. The results underlined the company’s ability to convert strong demand into outsized bottom-line growth.

Global Markets today

Asian markets opened higher on Thursday, tracking a strong overnight rally on Wall Street, though the upbeat mood faded as investors delivered a muted response to Nvidia Corp.’s optimistic sales outlook.

The MSCI Asia Pacific Index climbed 0.8% in early trade, reflecting gains across several regional markets. Hang Seng futures rose 0.7%, Japan’s Topix rose 1.2%, Australia’s S&P/ASX 200 rose 0.4%, and Euro Stoxx 50 futures rose 0.7%

US equity-index futures also edged lower during Asian hours after the chipmaker’s forecast failed to excite investors, reinforcing concerns that expectations around the AI-driven growth cycle may already be stretched.

The cautious reaction suggested that fears of an overheated artificial intelligence economy continue to hang over the sector, even as Nvidia maintains strong growth visibility.

Overnight in the US, equity markets posted solid gains. The S&P 500 advanced 0.8%, while the technology-heavy Nasdaq 100 outperformed with a 1.4% rise, driven largely by strength in mega-cap tech stocks.