Why NVIDIA Stock Jumped 70%?
NVIDIA (NVDA)’s stock surged 67%, powered by a revenue jump and a rising P/E multiple, even as margins slipped. Behind the rally: a Q3 earnings beat, booming AI demand, key strategic deals, and fresh growth sparked by China’s reopening and cutting-edge chip tech. What’s next? Let’s unpack it.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 4272025 | 1222026 | Change | |
|---|---|---|---|
| Stock Price ($) | 111.0 | 184.8 | 66.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 130,497.0 | 187,142.0 | 43.4% |
| Net Income Margin (%) | 55.8% | 53.0% | -5.1% |
| P/E Multiple | 37.3 | 45.3 | 21.5% |
| Shares Outstanding (Mil) | 24,489.0 | 24,327.0 | 0.7% |
| Cumulative Contribution | 66.5% |
So what is happening here? The stock soared 67%, driven by a 43% boost in revenue and a 22% jump in P/E multiple, despite a 5.1% dip in net margin. Let’s dive into what fueled these shifts.
Here Is Why NVIDIA Stock Moved
- Strong AI Demand: Sustained high demand for NVIDIA’s AI chips and data center solutions boosted revenue.
- Q3 FY26 Earnings Beat: November 19, 2025, earnings showed strong Q3 FY26 growth, Data Center revenue up 66%.
- China Export Reopening: December 2025 news of H200 sales to China, ending prior restrictions and boosting outlook.
- Strategic AI Deals: Major investments and licensing deals in 2025 reinforced AI market dominance.
- Advanced Chip Roadmap: Excitement over Blackwell Ultra ramp and upcoming Rubin chip series for 2026.
Our Current Assesment Of NVDA Stock
Opinion: We currently find NVDA stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell NVDA Stock to see what drives our current opinion.
Risk: A good way to gauge risk with NVDA is to check how much it fell during major market sell-offs. It plunged about 85% in the Global Financial Crisis and nearly 68% in the Dot-Com crash. The 2018 correction and Inflation Shock both saw drops over 55%. Even during the Covid pandemic, which was shorter, NVDA still pulled back around 38%. Solid fundamentals matter, but during big market shocks, NVDA has shown it can take a hard hit.
NVDA stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.