Nvidia's Stock Soars, Market Cap Set to Reach $7 Trillion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy NVDA?
Source: Fool
- Performance Exceeds Expectations: Nvidia reported $68 billion in revenue for Q4 FY2026, a 73% year-over-year increase, surpassing analyst expectations of $66.2 billion, demonstrating the company's robust growth momentum in the AI sector and solidifying its market leadership.
- Profitability Enhancement: Adjusted earnings per share (EPS) reached $1.62, an 82% increase year-over-year, with a gross margin of 75%, reflecting the company's efficient cost control and providing strong confidence for future investors.
- Optimistic Market Outlook: Wedbush analyst Matt Bryson raised Nvidia's price target to $300, indicating a potential upside of 67%, reflecting strong market confidence in its future growth, particularly against the backdrop of sustained growth in its data center business.
- Rapid Data Center Growth: Nvidia's data center segment revenue grew 75% year-over-year to $62.3 billion, with first-quarter revenue guidance of $78 billion indicating a 77% year-over-year growth, suggesting the company captures nearly 30% of AI infrastructure spending, highlighting significant future profit potential.
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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: 183.340
Low
200.00
Averages
264.97
High
352.00
Current: 183.340
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.
Nvidia's Earnings Exceed Expectations, Market Cap Could Reach $7 Trillion
- Significant Earnings Growth: Nvidia reported fourth-quarter fiscal 2026 revenue of $68 billion, a 73% year-over-year increase that surpassed analysts' expectations of $66.2 billion, showcasing the company's robust growth momentum in the AI sector.
- Substantial EPS Increase: The adjusted earnings per share (EPS) reached $1.62, an 82% year-over-year rise, driven by a gross margin of 75%, further solidifying investor confidence in the company's future profitability.
- Optimistic Market Outlook: Analyst Matt Bryson raised Nvidia's price target to $300, indicating a potential upside of 67% from the current price, reflecting the market's optimistic expectations for continued growth.
- Strong Data Center Performance: Nvidia's data center segment revenue grew 75% year-over-year to $62.3 billion, with first-quarter revenue guidance of $78 billion, indicating a near 30% market share in AI data center spending and a potential profit of $300 billion.
See More
Together AI Pursues $1B Funding Round Amid Rapid Growth
- Funding Target: Together AI is pursuing a $1 billion funding round aimed at supporting its infrastructure expansion to accommodate a rapidly growing AI ecosystem, with the company currently valued at $7.5 billion.
- Revenue Growth: Since its founding in 2022, Together AI has achieved an annualized revenue of approximately $1 billion, nearly tripling in less than a year, showcasing its strong performance in the AI cloud market.
- Infrastructure Expansion: The company has secured 200 MW of power capacity and is deploying optimized clusters of NVIDIA Blackwell GPUs across multiple North American data centers to enhance its service capabilities, further solidifying its position as a leading AI cloud provider.
- Partnerships: A new partnership with Hypertecto will co-build a cluster of 36,000 NVIDIA GB200 NVL72 GPUs, further enhancing Together AI's competitive edge and ensuring its leadership in the rapidly evolving AI sector.
See More
Investment Opportunities in Tech Stocks
- AI Market Outlook: Despite rising concerns over the pace of AI spending, demand remains robust, with experts suggesting that AI will complement other technologies, thereby driving long-term growth for related companies.
- Nvidia's Strong Performance: Nvidia's stock has surged over 600% in the past three years, with its latest report indicating sustained high demand for AI chips; currently, its price-to-earnings ratio is at its lowest in nearly a year, presenting a prime investment opportunity.
- Amazon's Cloud Services: Amazon's AWS has achieved a $142 billion annual revenue run rate, with AI-related business being a major growth driver, and the company's restructuring for profitability is expected to enhance its long-term earnings potential.
- Alphabet's Cloud Business Growth: Alphabet's Google Cloud revenue surged 48% in the recent quarter to over $17 billion; despite an 8% stock drop in February, its current price-to-earnings ratio of 26x indicates significant investment value.
See More
AI Boom Fuels Growth in Tech Stocks
- Strong AI Market Demand: Despite recent concerns over the pace of AI spending and high valuations, experts believe AI will complement other technologies, indicating sustained investor confidence in this sector.
- Nvidia's Outstanding Performance: As the leader in AI chips, Nvidia's stock has surged over 600% in the past three years, with its latest earnings report showing double or triple-digit growth in profit and revenue, reflecting ongoing strong demand for AI.
- Amazon Cloud Service Growth: AWS has reached an annual revenue run rate of $142 billion, with AI-related business being a major growth driver, as Amazon solidifies its market leadership by offering a diverse range of services from basic AI chips to fully managed systems.
- Explosive Growth in Google Cloud: Google Cloud's revenue surged 48% in the recent quarter to over $17 billion, demonstrating strong customer demand for its AI products, and despite an 8% drop in stock price in February, the current valuation remains attractive.
See More
Intel Signals Sustained Demand for Server Processors Amid AI Boom
- Strong Demand for Server Processors: Intel's CFO indicated that despite tight production capacity, demand for server processors remains robust, with expectations for continued growth into next year following a more than 20% unit growth last year, highlighting the rapid expansion of AI infrastructure driving market demand.
- Production Capacity Challenges: Despite the surge in demand, Intel and the broader semiconductor industry are grappling with manufacturing shortages, with some factories operating at or above full capacity, which could impact the company's delivery capabilities and market share.
- New Board Appointment: Intel announced the election of Craig H. Barratt as the new independent chair of the board, succeeding Frank D. Yeary, who has served as a director since 2009; this new appointment is expected to bring fresh strategic direction and leadership to the company.
- Reaffirmation of National Security Responsibilities: In response to concerns regarding collaboration with ACM equipment, Intel reiterated that it does not use such tools in its chip manufacturing process and emphasized its commitment to national security responsibilities, aiming to alleviate worries about potential ties to Chinese military-related companies.
See More
AMD Stock Declines Amid AI Valuation Concerns
- Earnings Beat: AMD's fourth-quarter results released on February 3 showed a non-GAAP profit of $1.53 per share on revenue of $10.27 billion, surpassing Wall Street's expectations of $1.32 and $9.67 billion, yet the stock fell due to disappointing forward guidance.
- Conservative Guidance: Although AMD guided for sales between $9.5 billion and $10.1 billion this quarter, with the midpoint exceeding the average analyst estimate of $9.38 billion, investor expectations for stronger AI-related demand were not met, leading to a negative market reaction.
- Partnership Expansion with Meta: On February 24, AMD announced an expansion of its partnership with Meta Platforms, providing MI450 GPUs and high-end CPUs for AI data centers, marking a significant win in its competition against Nvidia for market share.
- Increased Market Volatility: Despite AMD's strong Q4 performance and a major contract win, the stock continued to decline in February under pressure from the overall market and inflation data, dropping an additional 0.4% in early March amid heightened volatility.
See More
Nvidia's Earnings Exceed Expectations, Market Cap Could Reach $7 Trillion
- Significant Earnings Growth: Nvidia reported fourth-quarter fiscal 2026 revenue of $68 billion, a 73% year-over-year increase that surpassed analysts' expectations of $66.2 billion, showcasing the company's robust growth momentum in the AI sector.
- Substantial EPS Increase: The adjusted earnings per share (EPS) reached $1.62, an 82% year-over-year rise, driven by a gross margin of 75%, further solidifying investor confidence in the company's future profitability.
- Optimistic Market Outlook: Analyst Matt Bryson raised Nvidia's price target to $300, indicating a potential upside of 67% from the current price, reflecting the market's optimistic expectations for continued growth.
- Strong Data Center Performance: Nvidia's data center segment revenue grew 75% year-over-year to $62.3 billion, with first-quarter revenue guidance of $78 billion, indicating a near 30% market share in AI data center spending and a potential profit of $300 billion.
See More
Together AI Pursues $1B Funding Round Amid Rapid Growth
- Funding Target: Together AI is pursuing a $1 billion funding round aimed at supporting its infrastructure expansion to accommodate a rapidly growing AI ecosystem, with the company currently valued at $7.5 billion.
- Revenue Growth: Since its founding in 2022, Together AI has achieved an annualized revenue of approximately $1 billion, nearly tripling in less than a year, showcasing its strong performance in the AI cloud market.
- Infrastructure Expansion: The company has secured 200 MW of power capacity and is deploying optimized clusters of NVIDIA Blackwell GPUs across multiple North American data centers to enhance its service capabilities, further solidifying its position as a leading AI cloud provider.
- Partnerships: A new partnership with Hypertecto will co-build a cluster of 36,000 NVIDIA GB200 NVL72 GPUs, further enhancing Together AI's competitive edge and ensuring its leadership in the rapidly evolving AI sector.
See More
Investment Opportunities in Tech Stocks
- AI Market Outlook: Despite rising concerns over the pace of AI spending, demand remains robust, with experts suggesting that AI will complement other technologies, thereby driving long-term growth for related companies.
- Nvidia's Strong Performance: Nvidia's stock has surged over 600% in the past three years, with its latest report indicating sustained high demand for AI chips; currently, its price-to-earnings ratio is at its lowest in nearly a year, presenting a prime investment opportunity.
- Amazon's Cloud Services: Amazon's AWS has achieved a $142 billion annual revenue run rate, with AI-related business being a major growth driver, and the company's restructuring for profitability is expected to enhance its long-term earnings potential.
- Alphabet's Cloud Business Growth: Alphabet's Google Cloud revenue surged 48% in the recent quarter to over $17 billion; despite an 8% stock drop in February, its current price-to-earnings ratio of 26x indicates significant investment value.
See More
AI Boom Fuels Growth in Tech Stocks
- Strong AI Market Demand: Despite recent concerns over the pace of AI spending and high valuations, experts believe AI will complement other technologies, indicating sustained investor confidence in this sector.
- Nvidia's Outstanding Performance: As the leader in AI chips, Nvidia's stock has surged over 600% in the past three years, with its latest earnings report showing double or triple-digit growth in profit and revenue, reflecting ongoing strong demand for AI.
- Amazon Cloud Service Growth: AWS has reached an annual revenue run rate of $142 billion, with AI-related business being a major growth driver, as Amazon solidifies its market leadership by offering a diverse range of services from basic AI chips to fully managed systems.
- Explosive Growth in Google Cloud: Google Cloud's revenue surged 48% in the recent quarter to over $17 billion, demonstrating strong customer demand for its AI products, and despite an 8% drop in stock price in February, the current valuation remains attractive.
See More
Intel Signals Sustained Demand for Server Processors Amid AI Boom
- Strong Demand for Server Processors: Intel's CFO indicated that despite tight production capacity, demand for server processors remains robust, with expectations for continued growth into next year following a more than 20% unit growth last year, highlighting the rapid expansion of AI infrastructure driving market demand.
- Production Capacity Challenges: Despite the surge in demand, Intel and the broader semiconductor industry are grappling with manufacturing shortages, with some factories operating at or above full capacity, which could impact the company's delivery capabilities and market share.
- New Board Appointment: Intel announced the election of Craig H. Barratt as the new independent chair of the board, succeeding Frank D. Yeary, who has served as a director since 2009; this new appointment is expected to bring fresh strategic direction and leadership to the company.
- Reaffirmation of National Security Responsibilities: In response to concerns regarding collaboration with ACM equipment, Intel reiterated that it does not use such tools in its chip manufacturing process and emphasized its commitment to national security responsibilities, aiming to alleviate worries about potential ties to Chinese military-related companies.
See More
AMD Stock Declines Amid AI Valuation Concerns
- Earnings Beat: AMD's fourth-quarter results released on February 3 showed a non-GAAP profit of $1.53 per share on revenue of $10.27 billion, surpassing Wall Street's expectations of $1.32 and $9.67 billion, yet the stock fell due to disappointing forward guidance.
- Conservative Guidance: Although AMD guided for sales between $9.5 billion and $10.1 billion this quarter, with the midpoint exceeding the average analyst estimate of $9.38 billion, investor expectations for stronger AI-related demand were not met, leading to a negative market reaction.
- Partnership Expansion with Meta: On February 24, AMD announced an expansion of its partnership with Meta Platforms, providing MI450 GPUs and high-end CPUs for AI data centers, marking a significant win in its competition against Nvidia for market share.
- Increased Market Volatility: Despite AMD's strong Q4 performance and a major contract win, the stock continued to decline in February under pressure from the overall market and inflation data, dropping an additional 0.4% in early March amid heightened volatility.
See More
