Nvidia and Alphabet Report Strong Earnings Amid AI Boom
Nvidia (NASDAQ: NVDA) reported a substantial 62% year-over-year increase in revenue, reaching $57.0 billion for the third quarter of fiscal 2026, which ended on October 26, 2023. The company’s data center revenue, closely linked to AI technologies, soared by 66% to $51.2 billion. The strong performance was underscored by a gross margin of 73.4% and earnings per share of $1.30, a 67% rise compared to last year. Meanwhile, Alphabet (NASDAQ: GOOG | GOOGL) also demonstrated promising growth, with third-quarter revenue climbing 16% year-over-year to $102.3 billion. Earnings per share increased 35% to $2.87, driven in part by a 34% year-over-year rise in Google Cloud revenue, reaching $15.2 billion.
Both companies are capitalizing on the AI sector, but their growth trajectories differ in sustainability. Alphabet’s diversified model may present less cyclical risk compared to Nvidia, which is heavily reliant on the semiconductor industry. The latest collaboration between Alphabet and Apple (NASDAQ: AAPL) on AI technologies, particularly with the Google Cloud infrastructure supporting future Apple features, reinforces the strategic importance of Alphabet’s AI investments, particularly as its cloud backlog surged 82% year-over-year, now totaling $155 billion.
