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Nvidia Posts Record Quarter
Nvidia (NASDAQ: NVDA) reported a third-quarter fiscal 2026 revenue of $21.92 billion on November 19, 2023, reflecting a significant increase from the previous year. The company’s operating income converted 56% of its revenue into after-tax net income, amounting to $31.91 billion. Nvidia’s stock surged by as much as 6.5% in after-hours trading following the announcement.
Profitability and Future Outlook
With a current trajectory, Nvidia is expected to surpass Alphabet as the most profitable U.S. company within the next year. The company holds $60.61 billion in cash and equivalents against $7.47 billion in long-term debt, positioning it strongly against potential economic slowdowns. However, continued growth relies heavily on spending from key customers in the cloud computing sector.
Market Position and Risks
Nvidia’s leading position in AI technology makes it a top performer in the industry, albeit with risks linked to dependence on customer spending profitability. This dependency could significantly impact its performance during economic downturns, making it crucial for investors to consider both its strong fundamentals and potential market vulnerabilities.
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