Core Insights - Nvidia has significantly outperformed the stock market, with an investment of $1,000 three years ago now valued at nearly $8,601, while the current stock price is around $183 per share [1] - The stock has shown flat performance over the past six months, contrasting with a 39% increase in the PHLX Semiconductor Sector index during the same period [1][2] Financial Performance - Nvidia's earnings for the first nine months of fiscal 2026 increased by 50% year-over-year, with consensus estimates projecting earnings of $4.69 per share for the fiscal year, representing a nearly 57% increase from the previous year [5] - Analysts anticipate a 65% increase in earnings for fiscal 2027, followed by a 28% increase in the subsequent fiscal year [8] Margin and Production Insights - Nvidia's margins faced pressure in the first half of fiscal 2026 due to increased production of Blackwell processors, but management expects to maintain gross margins in the mid-70% range for fiscal 2027, an improvement from the 71% to 73% range seen earlier [6][7] - The company has a growing backlog of orders, which is expected to contribute to stronger earnings growth in fiscal 2027 [7] Future Growth Potential - The upcoming launch of next-generation Vera Rubin processors is anticipated to generate significant customer interest due to expected performance improvements over the current Blackwell processors [8]