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]