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Nvidia Stock Dips: AI Reacceleration Signal?
4 Dec
Summary
- Nvidia's Q3 revenue reached $57 billion, with data center sales up 66% year-over-year.
- Data center revenue showed a significant 25% sequential increase, indicating reacceleration.
- CEO Jensen Huang cited 'off the charts' Blackwell sales and 'sold out' cloud GPUs.
Nvidia has once again demonstrated robust financial performance, with sales climbing an impressive 62% year-over-year. The company reported fiscal 2026 third-quarter revenue of $57 billion, largely driven by its data center segment which generated $51.2 billion. This segment not only grew 66% compared to the previous year but also experienced a significant 25% sequential increase from the second quarter, breaking a trend of slowing growth rates and indicating a strong reacceleration.
CEO Jensen Huang expressed strong confidence in the company's trajectory, describing "off the charts" Blackwell sales and "sold out" cloud GPUs. He highlighted an accelerating demand for AI computation for both training and inference, entering what he termed a "virtuous cycle of AI." This robust performance and optimistic outlook suggest that fears of an AI bubble may be overstated, presenting a potential opportunity for investors looking to capitalize on the AI boom.
Despite the strong results, Nvidia stock has seen a recent decline of about 13% from its highs. This dip, potentially influenced by news of competitors like Google's parent company exploring custom AI chips with Meta Platforms, could be a favorable entry point for investors. The company's consistent ability to surpass expectations and the clear reacceleration in its core data center business underpin a positive outlook.
