Nvidia's Strong Performance Growth, Storage and TV Panel Prices Expected to Maintain Upward Momentum

Wanlian Securities recently released a tracking report on the electronics industry: On February 25, 2026, NVIDIA announced its fiscal year 2026 fourth quarter and full-year financial results as of January 25, 2026. The fourth quarter revenue reached a record $68.127 billion, a 20% increase quarter-over-quarter and a 73% increase year-over-year. For the first quarter of fiscal year 2027, NVIDIA provided a clear outlook, expecting revenue of $78 billion, with a variance of ±2%. NVIDIA founder and CEO Jensen Huang stated that demand for Blackwell architecture GPUs currently far exceeds supply, with high order visibility.

Summary of the research report:

Industry Key Points:

Last week, the Shanghai and Shenzhen 300 Index rose by 1.08%, and the Shenwan Electronics Index increased by 4.07%, ranking 13th among 31 Shenwan first-level industries, outperforming the CSI 300 by 2.99 percentage points. Last week, NVIDIA released its fiscal year 2026 fourth quarter and full-year financial results, with revenue of $68.1 billion, up 20% quarter-over-quarter and 73% year-over-year. Data center business became the core growth engine, and guidance for the next quarter’s revenue is $78 billion, with a ±2% variance, indicating a relatively optimistic outlook for industry chain demand. We believe the AI computing power industry chain is expected to maintain high prosperity, with strong demand in segments such as PCB and storage. Both PCB and storage are in an expansion cycle, likely to boost upstream equipment and material demand. It is recommended to focus on investment opportunities in segments like PCB, storage, and the upstream and downstream of the industry chain.

Investment Highlights:

Industry Dynamics: (1) AI Chips: On February 25, 2026, NVIDIA announced its fiscal year 2026 fourth quarter and full-year financial results, with record revenue of $68.127 billion, up 20% quarter-over-quarter and 73% year-over-year. For the first quarter of fiscal year 2027, NVIDIA provided a clear outlook, expecting revenue of $78 billion, with a ±2% variance. CEO Jensen Huang stated that demand for Blackwell architecture GPUs currently far exceeds supply, with high order visibility. (2) Storage: According to TrendForce, in Q4 2025, the DRAM industry revenue was $53.58 billion, an increase of 29.4% from the previous quarter. Looking ahead to Q1 2026, as CSPs strive to ensure supply and remain open to procurement prices, other applications need to follow price increases to secure supply from manufacturers. This is expected to accelerate contract price increases for most products, with conventional DRAM contract prices estimated to rise by 90-95%, and the overall contract prices for conventional DRAM and HBM combined to increase by 80-85%. (3) Panels: On February 23, 2026, TrendForce announced panel prices. TV panel prices increased, display monitor panel prices saw slight changes, and laptop panel prices declined. In February, TV panel demand remained stable, and panel manufacturers planned capacity adjustments of 5-7 days during the Lunar New Year, maintaining overall supply and demand stability. After the holiday, price negotiations between buyers and sellers are expected to remain largely unchanged, with TV panel prices continuing to rise. The February price increases are estimated as follows: 32-inch, 43-inch, and 50-inch panels up by $1; 55-inch panels up by $2; 65-inch panels, due to strong demand, up by $3; and 75-inch panels up by $2.

Industry Valuation: As of March 1, 2026, the PE (TTM) for the SW Electronics sector was 90.67 times. The average PE (TTM) from 2019 to March 1, 2026, was 53.93 times, indicating that industry valuation is above the historical median level during this period.

Risk Factors: Intensified US-China technological friction; AI application development underperforming expectations; domestic technological breakthroughs falling short; downstream terminal demand weaker than expected; increased market competition. (Wanlian Securities Xia Qingying, Chen Da)