NVIDIA Earnings Spark IT Rally? TCS, HCL Tech, Wipro, Infosys, etc Jump As AI Giant Delivers Strong Q4

NVIDIA Earnings Impact: Tata Consultancy Services (TCS), HCL Tech, Wipro, Tech Mahindra, Persistent, Mphasis, OFSS, Infosys, and other IT stocks opened higher on Thursday. The rally in IT stocks came a day after artificial intelligence giant NVIDIA reported robust fourth-quarter earnings.

"NVIDIA's latest earnings strongly reinforce that the global AI investment cycle remains robust and is, in fact, accelerating. With record data center revenues and optimistic forward guidance, the results confirm that hyperscalers and enterprises continue to invest aggressively in AI infrastructure. This has direct positive implications for Indian IT companies, which play a crucial role in enabling AI deployment, cloud transformation, and enterprise integration for global clients," stated Tushar Badjate, Director of Badjate Stock & shares Pvt Ltd.

IT Stocks Rally: TCS, Tech Mahindra, LTIMindtree, Infosys, HCLTech, More

Nifty IT was 1.2% higher at 9:50 am on Thursday, February 26. Persistent Systems Limited was up 3%, Tech Mahindra was up close to 2.5%, Oracle Financial Services Software was up 2.2%, and LTIMindtree was up around 2%. HCL Tech, Infosys, and TCS were up around 1.5% in the early hours of the stock market opening. Whereas, Wipro's share price was trading 0.85% higher.

NVIDIA Earnings Spark IT Rally?

NVIDIA's earnings have triggered positive sentiment, creating a ripple effect across South Asian markets and global IT stocks.

"NVIDIA's earnings have acted as a trigger for positive sentiment. Indian IT stocks are closely linked to US tech stocks. When US markets react positively to strong earnings from a major tech company like NVIDIA, Indian IT stocks often open higher the next morning," explained Darshan Rathod, COO, MULTYFI, adding that while NVIDIA's earnings acted as a catalyst, the IT rally is underpinned by wider market dynamics.

"The rally is not only because of NVIDIA. It is more about improving global tech confidence, strong AI demand, and investors becoming more positive about the sector overall. So yes, NVIDIA earnings helped sentiment but the rally reflects broader optimism in global technology stocks," added Rathod.

NVIDIA Earnings

NVIDIA reported robust earnings in the fourth quarter, driven by consistent demand for AI-focused chips. NVIDIA's fourth-quarter revenue was up around 73% on a year-on-year basis to $68.1 billion for the quarter ending on January 25, 2026. NVIDIA's Q4 revenue jumped around 20% on a sequential basis and managed to exceed the experts' expectations.

NVIDIA margins came in at 71.1% for the full fiscal year, and 71.3% for the period. Earnings per diluted share were recorded at $1.76% on a GAAP basis and around $1.62 non-GAAP for the quarter under review.

"Computing demand is growing exponentially- the agentic AI inflection point has arrived. Grace Blackwell with NVLink is the king of inference today-delivering an order-of-magnitude lower cost per token -- and Vera Rubin will extend that leadership even further," stated Jensen Huang, founder and CEO of NVIDIA.

"Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute - the factories powering the AI industrial revolution and their future growth."

NVIDIA Earnings Outlook

The company expects to generate a revenue of $78 billion and it has not included assuming any data centre compute revenue from China in its outlook. GAAP and non-GAAP gross margins are expected to be 74.9% and 75.0%. For the full year fiscal 2027, GAAP and non-GAAP tax rates are expected to be between 17.0% and 19.0%.

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