Nvidia is already the world's most valuable company, but its rally could just be getting started.As of the end of trading on Tuesday, Nvidia (NVDA +1.57%) boasted a market capitalization of about $4.3 trillion.While shares of the semiconductor giant have soared by 1,000% throughout the artificial intelligence (AI) revolution, Beth Kindig of the I/O Fund thinks Nvidia's rally is just getting started. In a recent investor note, Kindig outlined a path by which she believes Nvidia could reach a market cap of $2 ...

Key Points Nvidia remains the leader in AI infrastructure. Broadcom has a big opportunity in front of it with custom AI chips. Growing its share of the huge GPU space would be a big growth driver for AMD. 10 stocks we like better than Nvidia › With spending for artificial intelligence (AI) infrastructure still on the rise, now looks like a good time to invest in the space. Let's look at three stocks set to be AI infrastructure winners. Nvidia Nvidia (NASDAQ: NVDA) remains the king of AI infrastr ...

The company's fate is becoming more tied to one large customer.Nvidia (NVDA +1.40%) continued its streak of remarkable revenue growth in its third quarter (ended Oct. 26), as demand for its graphics processing units (GPUs) remains insatiable. However, there was one red flag in its report that investors should be aware of moving forward. Nonetheless, the stock jumped on the results, and it is now up more than 40% on the year.Let's dig into Nvidia's results and prospects to see whether investors should buy th ...

21 November 2025 | 3:18AM EST Equity Research AMERICAS TECHNOLOGY: HARDWARE 2025 bus tour takeaways: ANET, SMCI, 650 Group, CSCO We hosted a hardware investor bus tour in California on November 20th, 2025 to meet with management teams from Arista Networks (ANET, Buy), Super Micro (SMCI, Sell), 650 Group (Private), and Cisco Systems (CSCO, Neutral). Going into the day, we were positive on networking in AI given the growing importance of GPU utilization and uptimes and the relative underinvestment in networki ...

247 Wall Street NVIDIA (Nasdaq: NVDA) reports fiscal third quarter 2026 results after the close, and expectations could hardly be higher. The company is coming off another record quarter with $46.7 billion in Q2 revenue, driven by surging demand for Blackwell, strong sequential growth in networking, and broad adoption across CSPs, enterprises and sovereign AI programs. Jensen Huang and Colette Kress emphasized that the global AI build-out is still in its early innings, with industry CapEx now running at an ...

Core Viewpoint - Nvidia is poised to achieve record data center revenue, driven by high demand for its GPUs and a significant order backlog of $500 billion for new chips over the next five quarters [1][6][12] Group 1: Financial Outlook - Nvidia's CEO Jensen Huang announced a $500 billion order book for the new Blackwell and Rubin GPUs, indicating strong future revenue potential [5][6] - The actual backlog figure is estimated to be closer to $307 billion, which is expected to be recognized over the next year [11] - Nvidia's data center division is now generating more than $30 billion in revenue quarterly, showcasing substantial growth compared to previous years [12][13] Group 2: Market Reaction - Following the announcement of the order backlog, Nvidia's market capitalization surged to over $5 trillion [6] - Investors are optimistic about Nvidia's growth trajectory, which is expected to exceed Wall Street's current expectations [14][16] Group 3: Product Demand and Development - The demand for Nvidia's GPUs has created a virtuous cycle of sales and reinvestment into developing more powerful architectures [3][10] - Approximately 30% of the demand for Blackwell chips relates to units already shipped, meaning some revenue has already been recognized [10] Group 4: Investment Perspective - Nvidia's forward price-to-earnings (P/E) ratio of 30 is considered reasonable given its robust sales pipeline and expanding profitability [16] - Nvidia is viewed as a compelling buy-and-hold opportunity for technology investors, suitable for long-term portfolios [17]

Core Insights - Microsoft has launched its first massive AI system, referred to as an AI "factory," which will be deployed across its Azure data centers to support OpenAI workloads [1] - Each AI system consists of over 4,600 Nvidia GB300s rack computers equipped with the Blackwell Ultra GPU chip, with plans to deploy "hundreds of thousands" of these GPUs globally [2] - The announcement follows OpenAI's significant data center deals with Nvidia and AMD, with OpenAI reportedly securing $1 trillion in commitments for its data center expansion by 2025 [3] - Microsoft operates more than 300 data centers in 34 countries, positioning itself to meet the demands of advanced AI applications [4] - Further details on Microsoft's AI workload capabilities are expected to be shared at the upcoming TechCrunch Disrupt event [5]

Core Viewpoint - Nvidia has evolved from a chip design company to a dominant player in AI infrastructure across multiple verticals, making it difficult to short the stock despite a 1250% increase in share price over the past five years [2]. Financial Performance - In Q2 2026, Nvidia reported revenue of $46.7 billion, a 56% year-over-year increase, marking the 11th consecutive quarter of exceeding revenue and profit expectations [5]. - The data center business generated $41.1 billion, accounting for approximately 88% of total revenue, driven by accelerated investments in AI infrastructure from cloud giants and governments [5]. - Nvidia's gross margin reached 60.5%, significantly higher than competitors like AMD, which reported a gross margin of 43% [5]. - For Q3 2026, Nvidia's revenue guidance is set at $54 billion, indicating a 15% sequential growth even when excluding contributions from the Chinese market [8]. Market Opportunities - Nvidia's CEO, Jensen Huang, raised the forecast for the global GPU market from $2 trillion to $3-4 trillion by 2030, with Nvidia currently holding about 90% market share [12]. - The capital expenditure in the data center sector is projected to reach $6.7 trillion, suggesting ongoing large-scale investments that Nvidia can capitalize on [12]. - Upcoming product launches, including the Rubin series chips in 2026 and Rubin Ultra series in 2027, are expected to maintain Nvidia's competitive edge and pricing power [12]. Strategic Developments - Nvidia is expanding its business beyond GPUs into networking hardware and software, addressing the bandwidth and latency needs of AI applications with products like Spectrum-X and InfiniBand [13]. - The company is also developing co-packaged optics technology to integrate fiber links directly into GPUs and switches, aiming to reduce latency and improve efficiency [13]. - Transitioning towards a stable recurring revenue model through software and services is a key future opportunity for Nvidia [14]. Valuation Metrics - Nvidia's projected revenue for FY 2025 is $130.5 billion, with a net profit of $74.3 billion, reflecting a 114% year-over-year growth [14]. - The forward P/E ratio is approximately 32.7, with a PEG ratio of 0.67, indicating that Nvidia is undervalued compared to historical standards where a PEG below 1 is considered attractive [17]. - Comparatively, competitors like AMD, Broadcom, and Qualcomm have higher PEG ratios of 1.4, 1.7, and 2.5, respectively, suggesting Nvidia's current valuation is reasonable [17].

Core Insights - NVIDIA Corporation's Networking business unit is emerging as a significant growth driver, with revenues reaching a record $7.3 billion in Q2 of fiscal 2026, nearly doubling year-over-year due to increased investments in AI data center infrastructure [1][10] Group 1: Networking Business Growth - The substantial growth in NVIDIA's Networking business reflects the increasing importance of low-latency and high-throughput connections for scaling AI workloads, driven by rising computing demands [2] - Strong demand for Spectrum-X Ethernet and InfiniBand solutions has been a key factor in this momentum, with Spectrum-X appealing to cloud providers seeking high-performance Ethernet networking [2][3] - The Zacks Consensus Estimate projects the Networking business unit's revenues to reach $33.74 billion in FY26, indicating approximately 160% year-over-year growth [4][10] Group 2: Competitive Landscape - NVIDIA faces competition in the AI networking space from Broadcom Inc. and Arista Networks Inc., both of which have established strengths in networking solutions [5] - Broadcom's focus on efficiency and integration in Ethernet switching and custom silicon positions it well to capture market share as AI infrastructure expands [6] - Arista Networks is recognized for its high-performance Ethernet switches and scalable networking systems, making it a significant competitor in AI-driven data centers [7] Group 3: Financial Performance and Valuation - NVIDIA's shares have increased by approximately 36.5% year-to-date, outperforming the Zacks Computer and Technology sector's gain of 22.4% [8] - The company trades at a forward price-to-earnings ratio of 32.96, which is higher than the sector average of 29.74 [12] - Earnings estimates for fiscal 2026 and 2027 have been revised upward, implying year-over-year increases of about 48.8% and 39.2%, respectively [15]

Market Overview - The S&P 500 and Nasdaq have reached new all-time highs, driven by positive sentiment regarding a potential trade deal between the U.S. and China, particularly concerning TikTok's operations in the U.S. [1] - China's Ministry of Commerce has initiated an anti-dumping investigation into American-made analog integrated circuits, which may complicate trade negotiations [1] Nvidia and Mellanox - Nvidia is facing antitrust accusations from China related to its $7 billion acquisition of Mellanox Technologies in 2020, although Nvidia's shares showed resilience, only dipping slightly in premarket trading [1] - Nvidia's spokesperson emphasized compliance with the law and cooperation with government agencies regarding export controls [1] - The acquisition of Mellanox has significantly enhanced Nvidia's data center strategy, with networking revenues reaching a record $7.3 billion last quarter, driven by strong demand for its products [1] Cybersecurity Sector - CrowdStrike and Palo Alto Networks have seen stock price increases, outperforming the tech-heavy Nasdaq [1] - Palo Alto Networks received a boost from Wedbush Securities, which added it to their "best ideas" list, highlighting fiscal year 2026 as a pivotal year for its platformization strategy [1] - CrowdStrike is under observation during its annual Fal.Con conference, with an investor briefing scheduled for Wednesday [1] Upcoming Economic Data - No major earnings reports are expected after Monday's close, but minor reports from Dave & Buster's and Ferguson are anticipated [1] - Key economic data, including the August retail sales report and industrial production figures, will be released on Tuesday, leading up to the Federal Reserve's interest rate decision on Wednesday [1]