Nvidia(US:NVDA) ZACKS·2025-11-20 14:31Core Insights - NVIDIA reported a strong quarter with revenues of $57 billion, a 62% increase year-over-year, driven by significant demand for AI chips [2][3] - The company's earnings per share (EPS) reached $1.30, surpassing Wall Street estimates, while data center sales were notably robust at $51.2 billion [3] - Despite concerns about AI sector overvaluation, NVIDIA's fundamentals remain strong, with a projected $500 billion in AI chip orders [4][5] Financial Performance - For the quarter ending in October, NVIDIA's revenue was $57 billion, a 62% increase from the previous year [2] - EPS for Q3 was $1.30, exceeding the Zacks Consensus Estimate of $1.24, while revenues beat estimates by 4.14% [3] - The data center business generated $51.2 billion, outperforming the Bloomberg consensus estimate of $49.3 billion [3] Future Outlook - NVIDIA expects revenues for Q4 of fiscal 2026 to be around $65 billion, exceeding the Zacks Consensus Estimate of $60.30 billion [6] - The company anticipates additional orders beyond the initial $500 billion in AI chip orders, although there are concerns regarding U.S. export restrictions to China [5] Market Position and Recommendations - NVIDIA is at the center of a growing network of financial ties among AI leaders, which is drawing regulatory scrutiny [7] - The company has a Zacks Rank of 2 (Buy) with an average brokerage recommendation of 1.26, indicating strong buy sentiment [8] - The average price target for NVIDIA is $238.60, representing a potential increase of 27.9% from the last closing price of $186.52 [10]