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NVIDIA Corporation reported a significant rise in its data center business, achieving $41.1 billion in revenues during the second quarter of fiscal 2026, a 56% increase year-over-year. This surge is driven by heightened demand for AI computing from hyperscalers and enterprise customers. NVIDIA anticipates total revenues of $54 billion for the third quarter, with the data center unit projected to generate approximately $48.88 billion, marking a 59% year-over-year increase. The consensus estimate for fiscal 2026 revenues for the data center business stands at $182.12 billion, also reflecting a 58% increase.
The company’s momentum is attributed to its Blackwell architecture and GB300 systems, which enhance performance and energy efficiency for complex AI workloads. Competitors such as Advanced Micro Devices, Inc. (AMD) and Intel Corporation (INTC) are also vying for market share in the AI data center sector, with AMD focusing on its MI300 accelerators and Intel promoting its Gaudi series.
NVIDIA shares have increased by approximately 40.8% year-to-date, compared to a 22.8% gain in the Zacks Computer and Technology sector. The forward price-to-earnings ratio for NVIDIA stands at 33.46, exceeding the sector average of 29.27, with earnings estimates for fiscal years 2026 and 2027 expected to rise by 48.8% and 39.3%, respectively.
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