Key Takeaways NVDA trades at a premium with a forward P/E of 37.06X, well above the sector and most semiconductor peers.NVDA benefits from strong AI-driven demand as its data center unit delivered nearly 90% of total Q3 revenues.NVDA posted Q3 revenue growth of 62% and expects Q4 sales to climb 66% year over year.NVIDIA Corporation (NVDA) shares are currently trading at a premium, as suggested by the Value Score of D. The stock is trading at a premium, with a forward 12-month price-to-earnings (P/E) multipl ...

Key Takeaways NVDA's Data Center generated $51.22B in Q3 FY26, nearly 90% of sales, up 66% year over year.NVIDIA's Blackwell and Hopper GPU platforms drove growth as cloud providers scaled AI infrastructure.NVDA expects Q4 FY26 revenues of $65B and a 75% gross margin, reflecting strong AI-driven demand.NVIDIA Corporation (NVDA) shares have soared 38.8% in 2025, outperforming the broader Zacks Semiconductor – General industry’s rise of 35.9%. It has even outpaced major semiconductor companies, including QUAL ...

Core Insights - NVIDIA Corporation (NVDA) shares have increased by 27.4% over the past six months, outperforming the Zacks Semiconductor – General industry's growth of 25.1% [1] - The stock's performance is largely attributed to the surge in demand for artificial intelligence (AI) technologies, particularly for its graphics processing units (GPUs) and computing solutions [1] Performance Comparison - NVIDIA has outperformed major semiconductor companies such as QUALCOMM (QCOM), STMicroelectronics (STM), and Texas Instruments (TXN), with QUALCOMM gaining 12.6%, while STMicroelectronics and Texas Instruments saw declines of 9.8% and 10.6%, respectively [2] Data Center Growth - The Data Center segment is NVIDIA's primary growth driver, generating $51.22 billion in revenues in Q3 of fiscal 2026, accounting for 89.8% of total sales, reflecting a 66% year-over-year increase and 25% sequential growth [6][10] - The demand for NVIDIA's Blackwell and Hopper 200 GPU computing platforms has significantly contributed to this growth, as cloud providers and enterprises expand their AI infrastructure [7][8] Financial Performance - In Q3 of fiscal 2026, NVIDIA's revenues rose by 62% year-over-year, with non-GAAP earnings per share increasing by 60% [11] - The company anticipates Q4 revenues to reach $65 billion, a 66% year-over-year increase, with a gross margin projected at 75%, indicating a 150-basis-point improvement from the previous year [12] Cash Flow and Shareholder Returns - NVIDIA generated a free cash flow of $23.75 billion in Q3 and $66.53 billion in the first three quarters of fiscal 2026, ending Q3 with $60.6 billion in cash and equivalents [15] - The company returned $243 million to shareholders through dividends and repurchased $12.46 billion in stocks during Q3, with total buybacks reaching $36.27 billion in the first three quarters [16] Valuation - Despite the stock's rally, NVIDIA trades at a forward 12-month price-to-earnings (P/E) ratio of 27.26X, which is lower than the industry average of 29.03X [17] - Compared to peers, NVIDIA has a higher P/E than QUALCOMM and STMicroelectronics but lower than Texas Instruments, which trades at 28.39X [20] Investment Recommendation - NVIDIA's strong fundamentals, leadership in AI, and positive growth outlook present a compelling case for investment, supported by reasonable valuations [21]

Core Insights - NVIDIA Corporation (NVDA) has experienced significant stock performance, reaching a 52-week high of $191.05, largely driven by the artificial intelligence (AI) boom [1][9] - Year-to-date, NVIDIA shares have increased by 40.5%, outperforming the Zacks Computer and Technology sector's growth of 23.6% and major semiconductor companies [2][4] Financial Performance - In Q2 of fiscal 2026, NVIDIA's Data Center business generated $41.1 billion in revenues, accounting for 87.9% of total sales, with a year-over-year increase of 56% and a sequential growth of 5% [5][11] - Non-GAAP earnings per share rose by 54%, with a non-GAAP gross margin of 61% and operating income increasing by 51% year-over-year to $30.17 billion [11][12] - The company anticipates Q3 revenues to rise by 55% year-over-year to $54 billion, with a gross margin expected at 73.5% [13] Market Position and Demand - NVIDIA's growth is primarily fueled by the demand for its Blackwell GPU computing platforms, which are essential for AI applications [6][10] - The company maintains a strong liquidity position with $56.79 billion in cash and equivalents, allowing for reinvestment in R&D and shareholder returns [16][17] Valuation Concerns - NVIDIA's current forward 12-month Price/Earnings (P/E) ratio stands at 33.62X, higher than the sector average of 29.07X and other major semiconductor companies [18][22] - Despite the high valuation, NVIDIA's strong fundamentals and growth outlook support a hold position for investors [23]

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]