NVIDIA (NVDA)’s share price soared by 73%, in the past nine months, driven by a potent combination of AI-generated demand in data centers and impressive Q3 earnings.
SANTA CLARA, CALIFORNIA – MAY 30: An exterior view of the NVIDIA headquarters on May 30, 2023 in Santa Clara, California. Chipmaker NVIDIA reached a $1 trillion market cap at the open bell of the NYSE on Tuesday morning. The company is forecasting second quarter sales of $11 billion, 50 percent higher than analyst estimates of $7.15 billion. (Photo by Justin Sullivan/Getty Images)
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Although margins decreased slightly, a notable rise in revenue and a growing P/E multiple signify the market’s trust in its GPU leadership and advancements in the automotive sector. Separately, with volatility returning, see Bitcoin Downside: Where Does This Fall In BTC’s Price End?
Let’s explore the narrative behind Nvidia’s increase.
The following is an analytical assessment of stock performance divided into significant contributing factors.
NVDA
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What’s going on here? The stock experienced a 73% increase, spurred by a 43% uptick in revenue and a 26% rise in P/E multiple, despite a 5.1% decrease in net margin. Let’s delve into the factors responsible for these changes.
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This Is Why NVIDIA Stock Changed
- AI Data Center Growth: Continued strong demand for AI chips led to substantial revenue growth in data centers.
- Impressive Q3 FY2026 Earnings: Strong financial results were reported in November 2025, showing revenue up 62%, surpassing market forecasts.
- Growth in Automotive Sector: Expanding collaborations and new AI algorithms for self-driving vehicles enhanced this area.
- GPU Market Leadership: NVIDIA retained a commanding market share in AI accelerators and discrete GPUs.
- High Demand for Blackwell/Rubin: Strong demand and sold-out status for the latest generation of AI platforms like Blackwell.
Our Current Assessment of NVDA Stock
Opinion: We currently view NVDA stock as attractive but subject to volatility. Why is this the case? Check out the complete story. Read Buy or Sell NVDA Stock to understand the basis for our current stance.
Risk: A reliable way to assess the risk associated with NVDA is to observe its performance during significant market downturns. It fell approximately 85% during the Global Financial Crisis and nearly 68% during the Dot-Com collapse. The corrections in 2018 and Inflation Shock both witnessed declines exceeding 55%. Even throughout the shorter Covid pandemic, NVDA still retraced about 38%. Strong fundamentals are important, yet during major market disruptions, NVDA has demonstrated it can face severe setbacks.
While NVDA stock may have experienced robust recent increases, investing in a single stock without extensive, thorough analysis can be precarious. The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has a history of comfortably outpacing its benchmark, which includes all three indices—the S&P 500, S&P mid-cap, and Russell 2000. What accounts for this? Collectively, HQ Portfolio stocks have yielded better returns with reduced risk compared to the benchmark index; providing a smoother investment experience, as illustrated by HQ Portfolio performance metrics.