Core Viewpoint - Nvidia's fiscal 2026 third-quarter results exceeded expectations, indicating continued robust growth in the AI sector, alleviating concerns about a potential bubble in AI stocks [1][2]. Group 1: Financial Performance - Nvidia's data center revenue surged by 66% year-over-year to a record $51.2 billion, reflecting strong demand for AI chips [4]. - Overall revenue increased by 62% to a record $57 billion, with non-GAAP earnings rising by 60% year-over-year to $1.30 per share, surpassing analyst expectations [5]. - The company forecasts $65 billion in revenue for the current quarter, a 65% increase from the previous year, with a projected gross margin of 75%, up 150 basis points from last year [7]. Group 2: Market Position and Demand - Nvidia is the leading player in the AI chip market, with all cloud GPUs sold out, indicating sustained demand [4]. - The company has received $500 billion in orders for its current and upcoming processors, with $150 billion already shipped, leaving a backlog of $350 billion [9][10]. - This backlog suggests a quarterly data center revenue run rate of $70 billion, positioning Nvidia to significantly outpace competitors like AMD and Broadcom [10][11]. Group 3: Competitive Landscape - Nvidia's growth trajectory is unmatched in the AI chip market, with its stock trading at a lower price-to-earnings ratio compared to AMD and Broadcom, while achieving faster growth [12]. - The company's dominance in the AI chip sector is expected to provide substantial upside for investors [13].