Nvidia Posts Record Results as Agent AI Drives 'Quantum Leap'

"3 to 10 Times More Chips Needed"… Nvidia Posts Record Results as Agent AI Demand Surges

The proliferation of agent-based artificial intelligence has propelled Nvidia to record-breaking results. The company posted revenue of $68.127 billion in fiscal Q4 2026 (January last year to January this year), up 73% year-over-year. CEO Jensen Huang described the moment as an "inflection point," stating that "agent AI has reached its 'ChatGPT moment.'" Agent AI requires three to 10 times more chips than conventional AI, creating a tailwind for Nvidia.

The comments suggest monetization of agent AI is imminent, following OpenAI's success in attracting 100 million ChatGPT subscribers within two months of launch. Next-quarter revenue guidance of $78 billion significantly exceeded Wall Street expectations.

Strong results combined with Huang's remarks lifted shares of Samsung Electronics and SK Hynix—both suppliers of high-bandwidth memory (HBM) to Nvidia—by more than 7%. However, risks remain, including chip inflation from memory shortages, concerns over circular transactions between Nvidia and tech firms, and questions about the sustainability of Big Tech's AI investments.

Japan Goes 'All In' While World Watches, Secures First U.S. Investment Deal

Following the U.S. Supreme Court's ruling against reciprocal tariffs, Japan is doubling down on its U.S.-aligned strategy, diverging from the European Union and South Korea. Bank of Japan Governor Ueda said the 15% global tariff would have "no significant impact on Japan," while Prime Minister Takaichi pledged to strengthen ties with Trump during her March visit to Washington.

Japan secured the world's first post-ruling U.S. investment deal, with approximately 20 companies including SoftBank and Panasonic committing to gas-fired power and data center projects in the United States. This aligns with Japan's semiconductor revival strategy, as Rapidus produces advanced chips using IBM technology transfer.

On currency, a rate check led by the U.S. Treasury Secretary stabilized the yen from 158 to 155 against the dollar through U.S.-Japan coordination. Meanwhile, tensions with China escalated after China's Ministry of Commerce added 20 Japanese companies, including Mitsubishi Heavy Industries, to its export control list. Analysts suggest Japan is positioning itself as Washington's top ally to gain tangible benefits while other nations remain on the sidelines.

"Attack If Talks Fail"… U.S. and Iran Begin Third Round of Nuclear Negotiations

The United States and Iran launched their third round of nuclear talks in Geneva on February 26 amid rising military tensions. This round is effectively the last negotiation before potential military action. President Trump has demanded Iran submit revised proposals within 15 days while targeting its funding channels and weapons supply networks.

Politico reported that senior Trump administration officials favor an Israeli preemptive strike scenario, calculating that Iranian retaliation would build U.S. public support for war. Polls show Republican voters support regime change in Iran but oppose American casualties, making a joint U.S.-Israeli operation following an Israeli first strike the most likely scenario.

The core issue is handling highly enriched uranium. Iran proposed reducing enrichment from 60% to 3.6% and halting activities for seven years but rejected overseas transfer in favor of domestic dilution. The United States demands immediate overseas removal of enriched uranium and elimination of sunset clauses. White House insiders are pessimistic about reaching a deal, with sources saying officials are "leaning toward bombing," while Iranian President Pezeshkian expressed optimism about the talks' prospects.

Xi Jinping Eyes Fourth Term: Key Numbers for This Year's Two Sessions—4.5%, 47%, 400 Billion Yuan

China's Two Sessions convene on March 4, unveiling the Xi Jinping government's 15th Five-Year Plan. As Xi consolidates power for a fourth term, key targets are expected to include a record-low 4.5% growth rate, raising household consumption to 47% of GDP to boost domestic demand, and 400 billion yuan in future-oriented investments.

This year's GDP growth target is expected to be lowered to 4.5-5%, a historic low, due to U.S. trade pressure and weak domestic demand. China has achieved its "around 5%" growth target for the past three years but is widely expected to lower expectations this year.

To stimulate consumption, Beijing plans to expand trade-in subsidies to services and raise household consumption from 40% to 47% of GDP. Science and technology R&D spending is certain to exceed 400 billion yuan (approximately 83 trillion won), accelerating semiconductor self-sufficiency and AI adoption. Politically, Xi's consolidation of power for a fourth term remains central, with follow-up measures expected against purged officials including former Central Military Commission Vice Chairman Zhang Youxia.