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Nvidia (NVDA) reported record revenue of $57.0 billion for fiscal Q3 2026, reflecting a 22% quarter-over-quarter and 62% year-over-year increase. Data center revenue also reached a record $51.2 billion, marking a 25% QoQ and 66% YoY rise. CEO Jensen Huang highlighted the “exponential growth” in AI demand during the earnings call.
The company guided for $65 billion in revenue for Q4, plus or minus 2%. Operating cash flow surged to $23.8 billion, up from $17.6 billion a year ago. However, the stock initially saw a positive reaction before a sharp sell-off occurred amidst investor skepticism regarding high expectations and concerns about potential overbuilding in the AI sector.
Despite these concerns, Nvidia’s fundamentals remain strong, with high gross margins in the mid-70s, and substantial multi-year cloud commitments growing to $26 billion. Market analysts are interpreting recent fluctuations as a potential buying opportunity amidst a significant ongoing capital expenditure cycle in AI.
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