VALUATION HIGHLIGHTS

1. Compute & Networking constitutes 96% of the Trefis price estimate for nVIDIA's stock.

WHAT HAS CHANGED?

Latest Earnings: Q2 FY'26

Nvidia reported record quarterly revenue of $96.2 billion, representing a 106% year-over-year increase, alongside adjusted diluted EPS of $2.22, which grew 113% year-over-year. Growth was led by the Data Center segment, which generated $89.0 billion in sales as hyperscalers, sovereign AI projects, and enterprise clients expanded generative AI compute capacity.

Note: Nvidia's FY'26 ended on January 25, 2026. Q2 FY'26 ended on July 26, 2026.

Vera Rubin Architecture Shipments

Nvidia officially began initial shipments of its next-generation Vera Rubin computing platform in August 2026. Designed to succeed Blackwell, the platform features higher interconnect bandwidth and extreme-scale inference capabilities, with management projecting it to account for roughly 20% of data center revenue in the third quarter.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Nvidia's value that present opportunities for upside or downside to the current Trefis price estimate:

Data Center

• Hyperscale and Sovereign AI Capex: Broadening spending from major cloud providers and sovereign nations continues to drive demand for GPU architectures. Higher-than-anticipated infrastructure allocations could push revenue past baseline expectations, while potential power supply limits or custom ASIC deployments present downside risks.


• Vera Rubin Platform Adoption: Rapid adoption of the new Vera Rubin architecture provides higher average selling prices and margin expansion. Faster production scaling offers upside to gross margins, whereas potential manufacturing bottlenecks could delay near-term shipments.

For additional details, select a division from the interactive Trefis split for Nvidia at the top of the page.

BUSINESS SUMMARY

Nvidia designs high-performance graphics processing units, system-on-chip units, and full-stack accelerated computing platforms for the data center, gaming, professional visualization, and automotive markets.

SOURCES OF VALUE

The Data Center segment represents the primary engine of Nvidia's market valuation due to its high gross margins and ecosystem lock-in.

Full-Stack AI Software and Hardware Ecosystem

Nvidia maintains a dominant moat through CUDA, its proprietary parallel computing platform, which locks in software developers and optimizes deep learning workloads exclusively for Nvidia hardware platforms.

Networking and Infrastructure Integration

The integration of Quantum InfiniBand and Spectrum-X Ethernet solutions enables Nvidia to offer end-to-end data center solutions, optimizing data transfer speeds across thousands of interconnected GPUs.

Gaming and PC Graphics Leadership

Nvidia continues to hold a commanding market share in consumer graphics cards, driven by ray-tracing technology and Deep Learning Super Sampling software enhancements.

KEY TRENDS

Generative AI Acceleration

Global transition from general-purpose computing to accelerated computing is accelerating, driving massive capital investments toward GPU-centric architecture across cloud service providers.

Sovereign AI Infrastructure Expansion

Nations and regional entities are increasingly investing in national compute clusters to build domain-specific custom artificial intelligence models locally.