ZACKS·2026-02-17 20:00Core Insights - The launch of ChatGPT in November 2022 has significantly increased demand for AI infrastructure, positioning NVIDIA at the forefront of the compute economy with a market cap exceeding $4.4 trillion and controlling over 80% of the AI chip market [1][7] - NVIDIA reported $57 billion in revenue for the third quarter of fiscal 2026, a 62% year-over-year increase, with $51.2 billion coming from data centers [1][4] - IonQ has gained 889% over the past three years, with a 222% revenue growth in Q3 2025, reaching $39.9 million, and a strong cash position of $3.5 billion [2][9] NVIDIA Overview - NVIDIA's stock has surged over 1300% since October 2022, driven by robust demand for AI chips and accelerated computing [1][7] - In the third quarter of fiscal 2026, NVIDIA achieved a net income of $31.9 billion and gross margins of 73.4%, with operating cash flow exceeding $23.8 billion [4][12] - The company is transitioning from the Ampere architecture to Blackwell and Rubin, supported by strong capital structure and aggressive R&D investments [4][11] IonQ Overview - IonQ is in the early stages of commercial growth but has shown significant momentum, exceeding revenue guidance by 37% in Q3 2025 [9][11] - The company has raised substantial capital, including a $2 billion equity offering, enhancing its balance sheet for R&D and strategic acquisitions [9][11] - IonQ's recent milestones include achieving 99.99% two-qubit gate fidelity, which strengthens its long-term platform position [11] Earnings Estimates - The Zacks Consensus Estimate for NVIDIA's fiscal 2027 earnings is $7.32 per share, indicating a projected growth of approximately 57% from fiscal 2026 [12][13] - In contrast, IonQ is expected to report a loss of $1.74 per share for 2027, although this reflects a 65.8% year-over-year improvement, suggesting narrowing losses [12][14]