Why NVIDIA Stock Jumped 70%?
NVIDIA (NVDA)’s stock skyrocketed 73%, fueled by a powerful blend of AI-driven data center demand and stellar Q3 earnings. While margins slipped slightly, a surging revenue and expanding P/E multiple reflect the market’s confidence in its GPU dominance and automotive sector breakthrough. Let’s unpack the story behind the surge.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 4282025 | 1232026 | Change | |
|---|---|---|---|
| Stock Price ($) | 108.7 | 187.7 | 72.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 130,497.0 | 187,142.0 | 43.4% |
| Net Income Margin (%) | 55.8% | 53.0% | -5.1% |
| P/E Multiple | 36.5 | 46.0 | 26.0% |
| Shares Outstanding (Mil) | 24,489.0 | 24,327.0 | 0.7% |
| Cumulative Contribution | 72.6% |
So what is happening here? The stock surged 73%, driven by a 43% revenue boost and a 26% jump in P/E multiple, despite a 5.1% dip in net margin. Let’s dive into the events behind these shifts.
Here Is Why NVIDIA Stock Moved
- AI Data Center Surge: Sustained robust demand for AI chips fueled significant revenue growth in data centers.
- Stellar Q3 FY2026 Earnings: Strong financial results reported in November 2025, with revenue up 62%, exceeded market expectations.
- Automotive Sector Growth: Expanding partnerships and new AI models for autonomous vehicles boosted this segment.
- GPU Market Dominance: NVIDIA maintained a dominant market share in AI accelerators and discrete GPUs.
- Blackwell/Rubin Demand: High demand and sold-out status for new generation AI platforms like Blackwell.
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.