NVIDIA Stock (NVDA) Great Growth and Good Value in Q3 2026 Earnings

NVIDIA (NASDAQ:NVDA) has become one of the most influential companies in the modern technology landscape, driving the rapid advancement of artificial intelligence, data-center computing, and high-performance graphics. As the world accelerates toward AI-powered applications and digital transformation, NVIDIA continues to deliver exceptional financial results that surpass market expectations. The company’s latest Q3 2026 earnings highlight not only its explosive growth, but also its ability to convert that momentum into strong profitability and long-term value creation. In this article we will dive into NVIDIA recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.

About NVIDIA

NVIDIA Corporation was founded in 1993, in Sunnyvale, California, by Jensen Huang, Chris Malachowsky, and Curtis Piem. Over time, it evolved from a graphics-chip maker into a global leader in GPUs, high-performance computing, and AI acceleration. Now headquartered in Santa Clara, NVIDIA designs advanced GPUs, SoCs, and full computing platforms that power data centers, AI workloads, autonomous machines, automotive systems, and professional visualization. Its strong position in the rapidly growing AI and data-center markets underscores its importance in today’s tech ecosystem.

NVIDIA Financial Performance

NVIDIA’s Q3 2026 results highlight exceptional financial strength across all major metrics. Quarterly revenue reached $57 billion, up 62.49% from $35.08 billion in Q3 2025, while quarterly EPS rose to $1.30, an increase of 66.67% from $0.78 a year earlier. On a trailing twelve-month basis, revenue climbed to $187.14 billion, up 65.22% from $113.27 billion, and TTM EPS increased to $4.04, up 59.73% from $2.53. Free cash flow per share (TTM) reached $3.15, rising 38.77% from $2.27 in Q3 2025. Profitability also remained outstanding, with a gross profit margin of 70.05%, net profit margin of 53.01%, and free cash flow margin of 41.32%, supported by a Return on assets of 53.53% and an exceptionally strong Return on equity of 107.36%, all while maintaining a low 0.09 debt-to-equity ratio. 

Over the past five years, NVIDIA has grown revenue at a 68.6% CAGR, net income at 98.6%, and free cash flow at 74.9%. The company has expanded at a rapid pace, and the strong demand for AI chips could continue to fuel its business growth in the coming years.

NVIDIA Fiscal 2026 Financial Forecast

Looking ahead, analysts forecast 2026 revenue of $212.97 billion, representing a 63.2% increase over 2025’s $130.5 billion, and expect 2026 non-GAAP EPS of $4.68, up 56.51% from $2.99 in 2025. Wall Street maintains a Strong Buy rating on the stock, with an average price target of $246.81 offering 37.98% upside, while the highest target of $352 suggests a potential 96.77% upside from current levels.

NVDA Stock Price Performance and Valuation

At the time this article was written NVIDIA stock was trading at $178.88 per share. NVIDIA stock has delivered a 21.96% gain over the past year, outperforming the 11.01% increase of the S&P 500. Its long-term performance is even more impressive, with the stock up 1248.8% over the past five years compared to the S&P 500’s 81.2% gain. 

Looking at the valuation side NVIDIA’s valuation reflects its strong growth profile. NVIDIA stock has dividend yield of 0.02%.The price to sales P/S ratio (TTM) is 23.56 and forward P/S is 20.61. The non-GAAP price to earnings P/E ratio is 44.6 with forward non-GAAP P/E of 38.6. While the price to free cash flow P/FCF ratio is 56.93. While these multiples may appear elevated at first glance, they remain reasonable given NVIDIA’s exceptional revenue and earnings growth, industry-leading margins, massive free-cash-flow generation, and dominant position in the explosive AI and data-center markets.

Based on Fiscal.ai data, looking at the valuation over the past five years, NVIDIA’s forward P/S, forward P/E, and P/FCF are all below their historical averages. This indicates a potential undervaluation, as NVIDIA despite already being the world’s highest-market-cap company is still projected to grow its business by more than 30% in the coming years.

NVIDIA Growth Potential

NVIDIA growth prospect remains strong driven by several factors.

• Explosive Data Center Segment Dominance and Blackwell GPU Adoption
  NVIDIA 's data center segment is its main growth driver, generating $51.2 billion in Q3 FY2026 revenue, which is 90% of total revenue and up 66% year-over-year. Within this, compute (GPU) revenues were about $43 billion, with networking adding $8.22 billion. The Blackwell GPU family has seen unprecedented demand, with CEO Jensen Huang stating "Blackwell sales are off the charts, and cloud GPUs are sold out." The GB300 variant contributes two-thirds of Blackwell revenue, showing rapid customer adoption.
  Blackwell's technical edge enables up to a 25x reduction in large language model inference costs and energy use, with a 10x performance boost in inference workloads. Its superior performance per watt, lowest total ownership cost, and seamless upgrade from Hopper GPUs create a strong competitive moat. NVIDIA has visibility to $500 billion in Blackwell and Rubin chip spending over 14 months, projecting about $300 billion revenue from these chips in calendar 2026.
• Multi-Year Revenue Visibility and Industry Spending Forecasts
  NVIDIA  has exceptional forward revenue visibility, reducing execution risk and supporting rapid growth. The company disclosed visibility to $500 billion in Blackwell and Rubin chip revenue from early 2025 through the end of 2026. Management projects $3 trillion to $4 trillion in global AI infrastructure spending by 2030, with NVIDIA products accounting for approximately 70% of costs in $50 billion AI-specific data centers. For calendar 2025, NVIDIA forecasted $203 billion in revenue, with an estimated $300 billion in Blackwell and Rubin revenue for 2026.
  This visibility comes from binding multi-year and enterprise purchase commitments, sovereign AI projects, and expanding customer segments. In Q3 FY2026, NVIDIA announced AI factory and infrastructure projects totaling 5 million GPU units across cloud providers, sovereign entities, enterprises, and supercomputing centers, supporting sustainable, exceptional growth rates.
• Expanding Customer Diversification Across Hyperscalers, Sovereigns, and Enterprises
  NVIDIA  faces customer concentration risk, with four major customers accounting for 61% of Q3 compute revenues. These include dominant hyperscalers Microsoft , Amazon , Google , and Meta . However, NVIDIA is actively diversifying its customer base, gaining orders from sovereign AI projects representing $20 billion in commitments and enterprises building private AI infrastructure. The company now serves five distinct customer categories: cloud providers, sovereigns, enterprises, modern builders, and supercomputing centers.
  This diversification reduces dependency on major hyperscalers and broadens NVIDIA’s market exposure, mitigating risks from potential spending slowdowns among top customers. Management highlighted that non-US cloud providers and enterprises drive growing incremental demand, which supports NVIDIA’s long-term growth outlook and five-year targets, enhancing resilience against fluctuations in hyperscaler capital expenditures.

Risks to Consider

While NVIDIA looks like a compelling investment case, we should be mindful of potential risks.

• AI Market Demand Cyclicality and Valuation Risks
  The AI hype cycle may slow down or shift to more cost-conscious AI investments, potentially weakening revenue growth. High investor expectations also raise valuation risks if NVIDIA  fails to meet growth or earnings projections, creating uncertainty around its stock performance despite strong AI market demand. This cautious transition could impact NVIDIA’s near-term financial momentum and market sentiment.
• Geopolitical and Regulatory Risks
  U.S. export controls on advanced GPUs have created significant uncertainty for NVIDIA , especially regarding sales to China. The company faces a notable $5.5 billion revenue impact from restricted access to the Chinese market. NVIDIA is complying fully with these rules, avoiding GPU design modifications in China, but this limits market access, complicates operations, and risks ongoing revenue reductions amid tightening regulations.
• Customer Concentration Risk
  NVIDIA  relies heavily on a few large customers, with two unnamed clients accounting for 39% of total revenue, 23% from Customer A and 16% from Customer B. This concentration poses a risk of revenue volatility if these customers reduce purchases or shift suppliers. While this boosts short-term growth, it increases dependency, making NVIDIA's revenue vulnerable to changes in buying behavior from key clients.

Read More: Celsius Holdings Stock (CELH) Great Growth and Good Value in Q3 2025

​Conclusion

NVIDIA’s Q3 2026 performance reinforces its position as a leader in AI, data-center computing, and high-performance technology. With explosive revenue and earnings growth, exceptional margins, strong cash flow, and minimal debt, the company continues to execute at an elite level. Despite premium valuation multiples, NVIDIA’s dominance in fast-growing markets and bullish analyst outlook make the stock an attractive long-term opportunity. For investors seeking sustained growth and industry leadership, NVIDIA remains a compelling investment choice.

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