Key Takeaways NVIDIA's Q3 revenues jumped 62.5% to $57.01B with strong gains in data-center and gaming sales. Data-center revenues surged 66% to $51.22B on heavy Blackwell shipments and rising GPU demand.NVIDIA guides Q4 revenue to $65B and highlights growth in automotive, gaming, and AI infrastructure.NVIDIA Corp. (NVDA) — the undisputed global leader of generative artificial intelligence (AI)-powered graphical processing units (GPUs) — reported strong third-quarter fiscal 2026 earnings results. Adjusted e ...

Core Viewpoint - NVIDIA Corp. is optimistic about resuming sales of H20 AI chips to China, which could significantly impact its revenue and stock price [1][8]. Sales and Revenue Impact - NVIDIA lost $2.5 billion in revenues in China in Q1 fiscal 2026 and anticipates an $8 billion revenue loss from China in Q2 fiscal 2026 [3]. - The resumption of sales in China could potentially bring back $10 to $20 billion in revenues for the remainder of fiscal 2026, translating to an EPS increase of 25 to 50 cents [4][21]. Stock Performance - NVIDIA's stock price increased by 4% following the announcement regarding H20 chip sales to China [1][8]. - The stock has surged nearly 97% since its recent low in early April, with a year-over-year gain of over 26% [5]. Innovation and Product Development - NVIDIA is committed to innovation, with plans to unveil Blackwell Ultra in the second half of 2025 and begin shipping Vera Rubin in 2026 [9]. - The company is shifting focus towards reasoning AI models, which require significantly more compute power, presenting new growth opportunities [11][12]. Automotive Sector Growth - NVIDIA's automotive revenue jumped 72% year-over-year to $567 million in Q1 fiscal 2026, with expectations to exceed $5 billion in fiscal 2026 [14]. - The company is actively involved in providing AI solutions for advanced driver-assistance systems and autonomous vehicles, partnering with major automotive brands [15][16]. Financial Metrics - NVIDIA has an expected revenue growth rate of 51.4% and an earnings growth rate of 41.8% for the current year [17]. - The company boasts a return on equity (ROE) of 105.1%, significantly higher than the S&P 500's ROE of 17% [19].

Core Insights - Nvidia's CEO Jensen Huang emphasized the importance of acquiring the fastest chips for enhanced performance and cost efficiency in AI applications [1][2] - The company is witnessing a significant increase in demand for its Blackwell GPUs, with major cloud providers purchasing 3.6 million units, indicating a strong market trend towards advanced AI infrastructure [5][4] Group 1: Product and Performance - Nvidia's Blackwell Ultra systems are projected to generate 50 times more revenue for data centers compared to the previous Hopper systems due to their superior speed in serving AI to multiple users [4] - The company is focusing on the economics of faster chips, highlighting that improved performance will lead to reduced costs for cloud providers [2][3] Group 2: Market Demand and Future Plans - Major cloud providers have already invested heavily in Nvidia's Blackwell GPUs, increasing their purchases from 1.3 million Hopper GPUs to 3.6 million Blackwell GPUs [5] - Nvidia has outlined its roadmap for future AI chips, including the Rubin Next and Feynman AI chips, to align with cloud customers' plans for expensive data centers [5] Group 3: Industry Dynamics - Huang expressed confidence that the demand for AI infrastructure will lead to several hundred billion dollars in investments over the next few years, with cloud providers already securing budgets and resources [6] - The CEO dismissed the potential threat from custom chips developed by cloud providers, arguing that they lack the flexibility needed for rapidly evolving AI algorithms [6][7]