Key Takeaways NVIDIA targets $65B in Q4 revenues after posting a record $57.01B in Q3 fiscal 2026.The data center unit generated $51.22B in Q3, up 66% year over year.Analysts see NVIDIA reaching $65.56B in Q4, driven by AI chip and Blackwell demand.NVIDIA Corporation (NVDA) is set to report its fourth-quarter fiscal 2026 results on Feb. 25, and it would be no surprise if the company reaches another sales milestone and surpasses the $65 billion target. NVDA has been setting new sales records for the past few ...

Key Takeaways NVDA's Data Center revenues hit $51.22B in Q3 FY26, nearly 90% of sales, up 66% year over year.NVDA's Blackwell GB300 systems are shipping in volume, offering higher performance and energy efficiency.NVDA expects continued data center strength from cloud, sovereign AI and enterprise AI demand.NVIDIA Corporation’s (NVDA) Blackwell platform is becoming a key driver of its Data Center revenue growth. In the third quarter of fiscal 2026, the Data Center segment generated $51.22 billion in revenues ...

Core Insights - NVIDIA Corporation's Data Center business remains the primary growth driver, generating $51.22 billion in revenues in Q3 fiscal 2026, accounting for 89.8% of total sales, with a 66% year-over-year increase and 25% sequential growth [1][10] Group 1: Business Performance - The Data Center segment reached new highs due to rising demand for accelerated computing, generative AI, and large-scale model training among cloud providers and enterprise customers [2] - NVIDIA anticipates continued strength from Blackwell shipments and expanding orders in cloud, sovereign AI, and enterprise AI projects, with long-term growth driven by the adoption of agentic AI and advanced inference systems [3] - Analysts project NVIDIA will exceed the fourth-quarter sales target of $65 billion, with the Zacks Consensus Estimate for Q4 fiscal 2026 revenues at $65.53 billion, indicating a year-over-year increase of 66.6% [4] Group 2: Competitive Landscape - Advanced Micro Devices (AMD) and Intel Corporation (INTC) are significant competitors in the AI data center space, with AMD gaining traction through its MI300 series accelerators and Intel reasserting its presence with the Gaudi series of AI accelerators [5][6][7] Group 3: Stock Performance and Valuation - NVIDIA's shares have increased approximately 33.9% year-to-date, outperforming the Zacks Computer and Technology sector's gain of 27.2% [8] - The company trades at a forward price-to-earnings ratio of 26.84, which is slightly lower than the sector's average of 28.71 [11] - The Zacks Consensus Estimate for NVIDIA's fiscal 2026 and 2027 earnings suggests year-over-year increases of about 54.5% and 51.3%, respectively, with upward revisions in the past 30 days [14]

Core Insights - Advanced Micro Devices (AMD) has made significant strides in the artificial intelligence (AI) sector, positioning itself as a competitor to Nvidia in data center AI chips after previously lagging behind [1][2] - AMD's MI300 series accelerators have gained traction among major hyperscalers, leading to record revenue growth in its data center segment, which is now seen as a viable alternative to Nvidia's dominance [2][5] - The company is focusing on creating a comprehensive AI infrastructure platform that includes silicon, high-speed interconnects, software tools, and scalable rack deployments for AI workloads [3][4] Strategic Shift - AMD is pivoting towards an open ecosystem approach, allowing for collaboration with partners to ensure compatibility and flexibility, contrasting with Nvidia's tightly integrated vertical model [4] - The company has set ambitious targets for its data center business, projecting a compound annual growth rate of over 60% and aiming to grow revenue from approximately $16 billion today to nearly $100 billion by 2030 [5][7] - Key upcoming products, such as the MI450 GPU and Helios rack-scale system, are critical for achieving these revenue targets, as they are designed for large-scale AI training and inference tasks [5][6] Market Position and Financial Projections - AMD currently holds nearly 40% of the server CPU market share and has the potential to exceed 50% as AI inference increasingly shifts to CPUs [7] - If AMD successfully executes its strategy, gross margins could reach 57%, with earnings projected to rise above $20 per share by 2030 [6][7]

Core Insights - NVIDIA Corporation (NVDA) is expected to report record revenues of over $54 billion for the third quarter of fiscal 2026, following a strong performance in the previous quarter where revenues reached $46.74 billion, a 56% year-over-year increase [1][2][5] Financial Performance - In the second quarter of fiscal 2026, NVIDIA's data center business generated $41.1 billion in revenues, marking a 56% increase from the previous year, driven by demand from hyperscalers and AI model developers [3][11] - The Zacks Consensus Estimate for third-quarter fiscal 2026 revenues is currently at $54.59 billion, indicating a year-over-year increase of 55.6% [5] Growth Drivers - The growth momentum is attributed to the booming data center business, which is benefiting from the global expansion of AI infrastructure [2] - The introduction of the Blackwell architecture and GB300 systems, which offer enhanced performance and energy efficiency, is central to NVIDIA's growth strategy [4][11] Competitive Landscape - NVIDIA faces competition from Advanced Micro Devices (AMD) and Intel Corporation (INTC) in the AI data center market, with AMD's MI300 series and Intel's Gaudi series of AI accelerators gaining traction [6][7][8] Valuation and Estimates - NVIDIA's shares have increased approximately 40.1% year-to-date, outperforming the Zacks Computer and Technology sector's gain of 24.3% [9] - The company trades at a forward price-to-earnings ratio of 32.26, higher than the sector average of 28.65 [12] - Earnings estimates for fiscal 2026 and 2027 have been revised upward, implying year-over-year increases of approximately 49.2% and 40%, respectively [15]

Core Insights - NVIDIA Corporation's data center business is the primary growth driver, achieving $41.1 billion in revenues for Q2 FY26, a 56% increase year-over-year, driven by demand from hyperscalers and AI model developers [1][10] - The Blackwell architecture, particularly the GB300 systems, is enhancing performance and energy efficiency, supporting complex AI workloads [2][10] - Management projects robust growth, with anticipated Q3 revenues of $54 billion and a consensus estimate for the data center unit at $48.88 billion, reflecting a 59% year-over-year increase [3][10] - The fiscal 2026 revenue consensus for the data center business is $182.12 billion, indicating a 58% increase year-over-year [4] Competitive Landscape - Advanced Micro Devices (AMD) is gaining traction with its MI300 series accelerators, appealing to cloud providers seeking alternatives to NVIDIA [5][6] - Intel is reestablishing its presence with the Gaudi series of AI accelerators, targeting enterprise clients with cost-effective solutions [7] Financial Performance - NVIDIA's shares have increased by approximately 40.8% year-to-date, outperforming the Zacks Computer and Technology sector's gain of 22.8% [8] - The forward price-to-earnings ratio for NVIDIA is 33.46, higher than the sector average of 29.27 [11] - Earnings estimates for fiscal 2026 and 2027 indicate year-over-year increases of approximately 48.8% and 39.3%, respectively, with upward revisions in the past 30 days [14]