Core Insights - NVIDIA reported record revenue of $57.0 billion for Q3 FY26, representing a 22% increase from the previous quarter and a 62% increase year-over-year [1][8] - The company achieved GAAP and non-GAAP gross margins of 73.4% and 73.6%, respectively [1][8] - NVIDIA's CEO, Jensen Huang, highlighted the exponential growth in compute demand across AI training and inference, indicating a robust AI ecosystem [3] Financial Performance - GAAP and non-GAAP earnings per diluted share were both $1.30 for the quarter [2] - Operating income reached $36.0 billion, up 27% quarter-over-quarter and 65% year-over-year [8] - Net income for the quarter was $31.9 billion, reflecting a 21% increase from the previous quarter and a 65% increase from the same quarter last year [8] Shareholder Returns - NVIDIA returned $37.0 billion to shareholders in the first nine months of FY26 through share repurchases and cash dividends [3] - The next quarterly cash dividend of $0.01 per share is scheduled for December 26, 2025 [4] Business Segments - Data Center revenue was a record $51.2 billion, up 25% from the previous quarter and up 66% year-over-year [9][17] - Gaming revenue for the quarter was $4.3 billion, down 1% from the previous quarter but up 30% year-over-year [17] - Automotive revenue reached $592 million, up 1% from the previous quarter and up 32% year-over-year [17] Future Outlook - NVIDIA expects Q4 FY26 revenue to be approximately $65.0 billion, with GAAP and non-GAAP gross margins projected at 74.8% and 75.0%, respectively [10][30] - Operating expenses are anticipated to be around $6.7 billion (GAAP) and $5.0 billion (non-GAAP) [10][30]

Investment Rating - The investment rating for the industry is "Positive" and maintained [6]. Core Insights - NVIDIA has launched NVQLink™, an open system architecture that integrates GPU computing with quantum processors to build accelerated quantum supercomputers, marking a significant step towards commercializing quantum computing [2][4]. - The release of NVQLink defines the role of classical computing power necessary for fault-tolerant quantum computing, indicating a shift from experimental demonstrations to high-performance computing systems, which lays a crucial foundation for the practical application of quantum computing [10]. - The NVQLink has achieved a data throughput of up to 400 Gbps and a maximum round-trip latency of only 3.96 microseconds, which are critical for maintaining the correct operation of 100 logical quantum bits [10]. - NVIDIA is continuously advancing in quantum computing, having developed a software development kit (SDK) called cuQuantum and a QPU-agnostic platform called NVIDIA CUDA-Q™, creating a hybrid computing architecture that combines quantum and classical computing [10]. - NVQLink has gained broad industry support, connecting with 17 QPU manufacturers, 5 controller manufacturers, and 9 U.S. national laboratories, enhancing development efficiency and system compatibility [10]. - The commercial potential of quantum computing is expected to accelerate in specific industries such as pharmaceuticals, materials science, and cryptography, leveraging its "quantum superiority" for targeted problem-solving [10]. - The launch of NVQLink is anticipated to accelerate the commercialization of quantum computers, suggesting investment opportunities across the entire quantum technology industry chain, particularly in leading companies in quantum computing and communication [10].