Nvidia(US:NVDA) ZACKS·2025-11-21 14:45Core Insights - NVIDIA Corp. reported strong third-quarter fiscal 2026 earnings, with adjusted earnings per share at $1.30, exceeding estimates and the previous year's figure [1] - Revenues reached $57.01 billion, surpassing estimates by 4.14% and showing a year-over-year increase of 62.5% [2] Revenue Breakdown - Data Center revenues, which constitute 89.8% of total revenues, increased by 66% year over year to $51.22 billion, driven by Blackwell GPU shipments [3] - Automotive revenues rose 31.9% year over year to $592 million, with expectations to exceed $5 billion in fiscal 2026 [7] Future Outlook - For Q4 fiscal 2026, NVIDIA anticipates revenues of $65 billion, above the consensus estimate of $60.3 billion, with a projected non-GAAP gross margin of 75% [5] - The company plans to introduce Rubin Next in 2027 and Feynman AI chips in 2028, supported by a bullish demand scenario for AI infrastructure spending [4] Market Position and Growth Potential - NVIDIA's gaming business generated $4.27 billion in sales, up 30.1% year over year, while OEM and Other revenues increased by 79.4% [9] - The company has a return on equity (ROE) of 108%, significantly higher than the S&P 500's 17% [10] Investment Sentiment - NVIDIA has a Zacks Rank 2 (Buy), indicating strong investment potential due to its proven execution and substantial unrealized potential in the AI sector [15] - The average target price from brokerage firms suggests a potential upside of 32.3% from the last closing price, with a maximum upside of 93.4% [12]