Nvidia’s Dominance in AI Hardware
Nvidia (NASDAQ: NVDA) has reported a significant year-over-year revenue increase of 62%, totaling $57 billion for the third quarter of FY 2026, which ended October 26. The data center division, pivotal for AI model training, accounted for $51.2 billion of this revenue, a 66% increase from last year. CEO Jensen Huang noted that the company is currently “sold out” of cloud GPUs, reinforcing its strong position in the AI hardware market.
Despite a slower rise of approximately 35% in 2025, compared to other AI stocks that have doubled, Nvidia is projected to rise another 48% in revenue for FY 2027. The company’s stock trades at 39 times forward earnings, presenting a reasonable valuation given its growth rate. Analysts suggest that the demand for Nvidia’s GPUs is set to continue rising, with global data center capital expenditures expected to increase from $600 billion in 2025 to between $3 trillion and $4 trillion by 2030.
