Nvidia(US:NVDA) Yahoo Finance·2026-01-25 19:47Core Insights - Nvidia CEO Jensen Huang shifted the focus from traditional chip discussions to broader topics such as electricity, construction, bond issuance, and the economic value of AI infrastructure during his talk at Davos [1]. Group 1: Nvidia's Business Overview - Nvidia reported a revenue of $57.0 billion for Q3 FY26, representing a 22% increase quarter-over-quarter and a 62% increase year-over-year [5]. - The data center revenue for Q3 FY26 was $51.2 billion, showing a 25% increase quarter-over-quarter and a 66% increase year-over-year [5]. - The company has a GAAP gross margin of 73.4% for Q3 FY26 [5]. - The revenue outlook for Q4 FY26 is projected at $65.0 billion, with a variance of plus or minus 2% [5]. - Nvidia returned $37.0 billion to shareholders in the first nine months of FY26, with $62.2 billion remaining under buyback authorization [5]. Group 2: Industry Trends and Projections - The IT load in U.S. data centers is expected to rise from approximately 80 GW in 2025 to over 150 GW by 2028, with significant growth in data center sizes anticipated [6]. - By 2030, it is projected that one in five data center campuses will exceed a gigawatt in size, increasing to one in three by 2035 [6]. - Goldman Sachs Research has revised its consensus estimate for 2026 hyperscaler capital expenditures to $527 billion, up from $465 billion, with hyperscalers spending $106 billion on capex in Q3 alone, marking a 75% year-over-year increase [6]. Group 3: AI and Economic Impact - Huang emphasized that the final layer of AI applications is where significant economic benefits will materialize, suggesting a shift from cyclical capital expenditures to continuous investment needs [7]. - A report indicates that power availability is becoming a critical factor in the success of data center markets, moving beyond being a mere planning variable [8].