Nvidia(US:NVDA) ZACKS·2025-11-10 14:25Core Insights - NVIDIA Corporation (NVDA) is expected to report record revenues of over $54 billion for the third quarter of fiscal 2026, following a strong performance in the previous quarter where revenues reached $46.74 billion, a 56% year-over-year increase [1][2][5] Financial Performance - In the second quarter of fiscal 2026, NVIDIA's data center business generated $41.1 billion in revenues, marking a 56% increase from the previous year, driven by demand from hyperscalers and AI model developers [3][11] - The Zacks Consensus Estimate for third-quarter fiscal 2026 revenues is currently at $54.59 billion, indicating a year-over-year increase of 55.6% [5] Growth Drivers - The growth momentum is attributed to the booming data center business, which is benefiting from the global expansion of AI infrastructure [2] - The introduction of the Blackwell architecture and GB300 systems, which offer enhanced performance and energy efficiency, is central to NVIDIA's growth strategy [4][11] Competitive Landscape - NVIDIA faces competition from Advanced Micro Devices (AMD) and Intel Corporation (INTC) in the AI data center market, with AMD's MI300 series and Intel's Gaudi series of AI accelerators gaining traction [6][7][8] Valuation and Estimates - NVIDIA's shares have increased approximately 40.1% year-to-date, outperforming the Zacks Computer and Technology sector's gain of 24.3% [9] - The company trades at a forward price-to-earnings ratio of 32.26, higher than the sector average of 28.65 [12] - Earnings estimates for fiscal 2026 and 2027 have been revised upward, implying year-over-year increases of approximately 49.2% and 40%, respectively [15]