Key Takeaways NVIDIA stock jumped to a new 52-week high of $191.05, while it has soared 40.5% YTD.Data Center sales rose 56% y/y in Q2, driven by strong GPU demand for AI workloads.Despite high valuation, NVIDIA's dominant position in AI and impressive outlook make it worth holding.NVIDIA Corporation (NVDA) has had a remarkable run so far this year, with its shares hitting a new 52-week high of $191.05 on Thursday. The stock has been a key beneficiary of the artificial intelligence (AI) boom, which has driv ...

Core Viewpoint - Nvidia reported strong second-quarter fiscal 2026 results, with revenues and earnings exceeding expectations, driven by robust growth across all end markets and lower operating expenses [2][3][18]. Financial Performance - Non-GAAP earnings per share for Q2 fiscal 2026 were $1.05, surpassing the Zacks Consensus Estimate by 5%, and reflecting a 54% year-over-year increase and a 30% sequential increase [2]. - Total revenues for Q2 fiscal 2026 reached $46.74 billion, marking a 56% year-over-year increase and a 6% sequential increase, beating the consensus mark by 1.3% [3]. - Non-GAAP gross margin was 72.7%, down 3 percentage points year over year but up 11.7 percentage points sequentially [12]. Segment Performance - The Graphics segment contributed 11.6% of total revenues, with revenues increasing 51% year over year to $5.41 billion, exceeding the consensus estimate of $4.75 billion [5]. - Compute & Networking segment represented 88.4% of total revenues, with revenues soaring 56% year over year to $41.33 billion, surpassing the consensus estimate of $40.49 billion [6]. - Data Center revenues, a key component of Compute & Networking, accounted for 87.9% of total revenues, increasing 56% year over year to $41.1 billion, driven by demand for Blackwell GPU computing platforms [7]. Market Insights - Gaming revenues rose 49% year over year to $4.29 billion, reflecting strong demand from gamers and AI enthusiasts, and exceeding the consensus estimate of $3.83 billion [8]. - Professional Visualization revenues increased 32% year over year to $601 million, surpassing the consensus estimate of $524.8 million [9]. - Automotive sales totaled $586 million, up 69% year over year, driven by the adoption of self-driving platforms, exceeding the consensus estimate of $573.4 million [10]. Cash Flow and Shareholder Returns - Operating cash flow for Q2 was $15.37 billion, with free cash flow of $13.45 billion [16]. - The company returned $244 million to shareholders through dividends and repurchased $9.72 billion in stock during the quarter [17]. - A new $60 billion share repurchase authorization was approved, increasing the total limit to $74.7 billion [17]. Guidance and Market Outlook - For Q3 fiscal 2026, Nvidia anticipates revenues of $54 billion (+/-2%) and a non-GAAP gross margin of 73.5% (+/-50 bps) [18]. - Recent estimates have trended upward, with a 5.54% shift in consensus estimates [19]. - Nvidia holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [22].

Core Insights - NVIDIA Corporation reported second-quarter fiscal 2026 revenues of $46.74 billion, a 56% year-over-year increase, surpassing consensus estimates by 1.3% [1][8] - The company's Data Center segment generated $41.1 billion in revenues, accounting for 87.9% of total sales, driven by demand for Blackwell and Hopper GPU computing platforms [5][6][8] Financial Performance - NVIDIA's stock has increased by 29.7% year to date, outperforming the Zacks Computer and Technology sector's gain of 12.9% [2] - Non-GAAP gross margins were reported at 61%, with non-GAAP operating income rising 51% year over year to $30.17 billion [9] - The company generated free cash flow of $13.45 billion in the second quarter and $39.58 billion in the first half of fiscal 2026 [13] Future Outlook - NVIDIA projects third-quarter revenues to reach $54 billion, reflecting a 55% year-over-year increase, with gross margins expected to remain strong at 73.5% [10] - The Zacks Consensus Estimates indicate continued growth momentum for fiscal 2026 and 2027 [10] Shareholder Returns - In the second quarter, NVIDIA returned $244 million to shareholders through dividends and repurchased stocks worth $9.72 billion [14] - In the first half of fiscal 2026, the company paid $488 million in dividends and bought back shares worth $23.82 billion [14] Valuation Considerations - NVIDIA's forward 12-month Price/Earnings (P/E) ratio is 33.43X, higher than the sector's average of 27.71X, indicating a premium valuation [15][18] - Compared to other semiconductor players, NVIDIA's P/E multiple is lower than Broadcom's but higher than Marvell Technology and QUALCOMM [18] Investment Recommendation - The company's strong financial performance and growth trajectory suggest holding the stock, despite its elevated valuation [19]

Core Viewpoint - NVIDIA Corporation reported mixed financial results for the first quarter of fiscal 2026, with earnings per share missing estimates but revenues showing significant year-over-year growth driven by strong performance across various segments [1][2]. Financial Performance - Non-GAAP earnings for the first quarter were 81 cents per share, missing the Zacks Consensus Estimate by 4.71%, but increased 32.8% year over year and declined 9% sequentially [1]. - Revenues reached $44.06 billion, up 69.2% year over year and 12% sequentially, surpassing the consensus estimate by 2.67% [2]. Segment Analysis - NVIDIA's revenues are categorized into two segments: Graphics and Compute & Networking [3]. - The Graphics segment contributed 10.2% of total revenues, with a year-over-year increase of 33% to $4.47 billion, although it fell short of estimates [4]. - Compute & Networking accounted for 89.8% of revenues, with a significant year-over-year growth of 75% to $39.6 billion, exceeding estimates [5]. Market Platform Performance - Data Center revenues, making up 88.8% of total revenues, increased 73.3% year over year to $39.1 billion, driven by demand for Blackwell GPU platforms [6]. - Gaming revenues rose 30.7% year over year to $3.76 billion, reflecting strong demand from various user groups [7]. - Professional Visualization revenues increased 19.2% year over year to $509 million, while Automotive sales grew 72.3% year over year to $567 million [8][9]. - OEM and Other revenues were up 42.3% year over year to $111 million [10]. Operating Metrics - Non-GAAP gross margin was 61%, down 17.9 percentage points year over year due to a $4.5 billion charge related to inventory issues [12]. - Non-GAAP operating expenses rose 43% year over year to $3.58 billion, but as a percentage of total revenues, they decreased to 8.1% [13]. - Non-GAAP operating income increased 29% year over year to $23.28 billion, with a decline in operating margin to 52.8% [14]. Balance Sheet and Cash Flow - As of April 27, 2025, NVIDIA had cash and marketable securities of $53.7 billion, up from $43.2 billion [14]. - Operating cash flow was $27.4 billion, significantly higher than the previous year [15]. - The company returned $244 million to shareholders through dividends and repurchased $14.1 billion in stocks [16]. Guidance - For the second quarter of fiscal 2026, NVIDIA anticipates revenues of $45 billion, slightly below the consensus estimate, with a projected non-GAAP gross margin of 72% [17].

NVIDIA Corporation (NVDA) has once again delivered a stellar earnings report, reinforcing its dominance in the artificial intelligence (AI) and semiconductor markets. On Feb. 26, the company reported fourth-quarter fiscal 2025 revenues of $39.33 billion, marking a 78% year-over-year surge and surpassing the consensus estimate of $37.72 billion.With a record-breaking data center segment and strong demand for AI-driven computing solutions, NVIDIA's growth story remains compelling. Strong fundamental growth dr ...