Nvidia Reports 62% Revenue Growth in Q3 Amid AI Spending Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Significant Revenue Growth: Nvidia's fiscal Q3 revenue surged 62% year-over-year, reflecting strong performance in the AI chip market, although investor concerns about sustainability may impact future stock performance.
- Surge in Capital Expenditure: Tech giants like Amazon, Alphabet, and Microsoft have announced massive investments in AI infrastructure, which are expected to boost Nvidia's sales, despite doubts about the sustainability of such spending.
- Intensifying Competition Risks: Amazon's in-house AI chip business has surpassed a $10 billion annual revenue run rate, and its Trainium2 chip is fully subscribed, indicating competitors' efforts to reduce AI chip costs, potentially threatening Nvidia's market share.
- Valuation Pressure: Nvidia's current price-to-earnings ratio stands at 45, with a forward P/E ratio of 24; while its earnings are growing rapidly, market concerns about its valuation may lead to stock price pressure, prompting investors to carefully assess potential risks.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 182.810
Low
200.00
Averages
264.97
High
352.00
Current: 182.810
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
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- Data Center Upgrade: Meta will deploy Nvidia's Grace CPUs for the first large-scale application in its data center production, expected to significantly improve performance per watt, enhancing operational efficiency and supporting Meta's ambitions in AI.
- Increased Capital Expenditure: In its latest earnings report, Meta projected capital expenditures between $115 billion and $135 billion for 2026, a substantial increase from $72.22 billion in 2025, primarily aimed at developing Meta Superintelligence Labs, highlighting its commitment to AI technology.
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See More
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- TSMC's Critical Role: TSMC anticipates nearly 30% revenue growth in 2026, while AI-related chip revenue is expected to grow at a compound annual growth rate of nearly 60% from 2024 to 2029, underscoring its importance and future growth potential in the AI supply chain.
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See More
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- TSMC's Market Position: TSMC expects overall revenue to grow nearly 30% in 2026, and from 2024 to 2029, AI-related chip revenue is forecasted to rise at a nearly 60% compound annual growth rate, highlighting its critical role in the AI supply chain.
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See More
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See More
