3 Reasons to Buy NVIDIA After Its Massive 62% Revenue Surge

NVIDIA Corporation NVDA is far ahead of its rivals, Advanced Micro Devices, Inc. AMD and Intel Corporation INTC, especially following its stellar performance last quarter. Soaring demand for its Blackwell chips and cloud services has fueled growth, and there are even more reasons to consider buying NVIDIA stock now. Let’s delve into it –  NVIDIA’s Record Q3 Sets the Stage for Even Bigger AI-Driven Gains NVIDIA delivered impressive fiscal third-quarter 2026 results, dispelling any doubts about its growth potential. For the quarter, NVIDIA reported revenues of $57 billion, representing a 62% year-over-year increase and a 22% rise from the previous quarter, as cited on investor.nvidia.com. Its revenues from the highly regarded data center segment were $51.2 billion, up 66% from a year ago and 25% from the prior quarter. Its gaming revenues of $4.3 billion may have declined 1% from the previous quarter, but it’s still up 30% compared to a year ago. NVIDIA’s CEO, Jensen Huang, explained that persistent demand for Blackwell-based systems lifted data center revenues, and that cloud graphics processing units (GPUs) are completely sold out. As a result, NVIDIA’s net income for the quarter increased to $31.91 billion, up from $19.31 billion in the same period last year. But it’s not just NVIDIA’s outstanding quarterly performance that stands out; the company’s confidence in ongoing growth is even more promising. NVIDIA anticipates that revenues for the fiscal fourth quarter of 2026 will reach around $65 billion, with a margin of plus or minus 2%. This optimism is driven by NVIDIA’s dominance in AI hardware and its strong competitive moat, reinforced by its CUDA software platform, which is expected to continue fueling its growth. 2 More Reasons That Make NVIDIA a Long-Term Play There’s been growing concern on Wall Street that the artificial intelligence (AI) boom might be a speculative bubble. However, Jensen Huang has eased those fears, asserting that “we’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.” In short, NVIDIA is well-positioned to benefit as AI becomes more deeply integrated into various applications. To top it off, NVIDIA’s management remains quite confident about its future growth and believes that the company is financially strong. Since the start of fiscal 2026, NVIDIA has returned $37 billion to its shareholders through share buybacks and cash dividends. NVIDIA: A Clear Buy Following NVIDIA’s record-breaking third quarter, its strong growth outlook, AI-driven momentum, and considerable shareholder returns make the stock even more attractive. Brokers are also optimistic about NVIDIA’s prospects. They forecast the average short-term price target for NVDA stock at $239.49, reflecting a 28.4% increase from the last closing price of $186.52. The highest target is $350, suggesting a potential upside of 87.7%.Image Source: Zacks Investment ResearchWhat’s more, NVIDIA is more affordable than its peers. Based on the price-to-earnings (P/E) ratio, NVIDIA trades at 40.33 times forward earnings compared to the Semiconductor - General industry’s forward earnings multiple of 45.92.Image Source: Zacks Investment ResearchFor now, NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks