5 Metrics Capture Nvidia's Mind-Boggling Growth

Core Viewpoint - Nvidia's recent quarterly results indicate strong growth in AI demand, suggesting that AI spending is still on the rise rather than peaking [1][2]. Group 1: Revenue Growth - Nvidia reported third-quarter revenue of $57.0 billion, reflecting a 62% year-over-year increase and a 22% increase from the previous quarter, marking the first acceleration in revenue growth after six quarters of deceleration [3][4]. - Data center revenue was a significant contributor, reaching $51.2 billion, up 66% year-over-year and 25% sequentially, driven by demand for AI training and inference hardware [4]. Group 2: Profitability Metrics - The company's gross margin on a non-GAAP basis was 73.6%, an increase from 72.7% in the previous quarter, indicating strong pricing power [5]. - Non-GAAP operating income was $37.8 billion, up 62% year-over-year and 25% sequentially, suggesting an operating margin in the mid-60s percent range, which is notable for a chipmaker in competitive markets [6]. Group 3: Share Repurchases - Nvidia returned approximately $37.0 billion to shareholders in the first nine months of fiscal 2026 through share repurchases of $36.3 billion and cash dividends of $732 million [8]. - The company had $62.2 billion remaining under its current share repurchase authorization as of the end of the third quarter, indicating strong financial flexibility [9]. Group 4: Future Guidance - Management's guidance for the fourth quarter anticipates revenue of $65.0 billion, implying approximately 65% year-over-year growth and about 14% sequential growth from the latest quarter [10]. Group 5: Earnings Performance - Non-GAAP earnings per share for the third quarter were $1.30, up 60% year-over-year and 24% sequentially, while GAAP earnings per share also rose 67% year-over-year to $1.30 [11].