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Will Data Center Unit Help NVIDIA Reach Its $65B Q4 Revenue Goal?
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Key Takeaways
NVIDIA targets $65B in Q4 revenues after posting a record $57.01B in Q3 fiscal 2026.
The data center unit generated $51.22B in Q3, up 66% year over year.
Analysts see NVIDIA reaching $65.56B in Q4, driven by AI chip and Blackwell demand.
NVIDIA Corporation (NVDA - Free Report) is set to report its fourth-quarter fiscal 2026 results on Feb. 25, and it would be no surprise if the company reaches another sales milestone and surpasses the $65 billion target. NVDA has been setting new sales records for the past few quarters. In the last reported financial results for the third quarter of fiscal 2026, its revenues reached a new record of $57.01 billion, reflecting a 62% year-over-year increase.
NVIDIA is optimistic that the growth momentum will continue as it again targets record revenues of $65 billion in the fourth quarter. The key driver behind this outlook is its booming data center business, which continues to power the company’s growth amid the global buildout of artificial intelligence (AI) infrastructure. In the third quarter of fiscal 2026, the data center business unit reported $51.22 billion in revenues, up 66% from last year.
The segment reached new highs as demand for accelerated computing, generative AI, and large-scale model training continued to rise across cloud providers and enterprise customers. Much of the momentum came from the rapid adoption of the GB300 platform and wider deployment of NVIDIA’s networking products, including NVLink and Spectrum-X. With hyperscalers racing to expand AI capacity, NVIDIA remained a key beneficiary of record spending on high-performance infrastructure.
The near-term outlook still appears solid, with the company expecting further strength from Blackwell shipments and expanding orders across cloud, sovereign AI and enterprise AI projects. NVIDIA also sees the growing adoption of agentic AI, long-context workloads and advanced inference systems, all of which depend on high-performance graphics processing unit clusters, as key catalysts for long-term growth. The Zacks Consensus Estimate for the data center segment’s fourth-quarter revenues is pegged at $58.72 billion, indicating a year-over-year increase of 65%.
The growing demand for the company’s AI chips used in data centers is likely to continue aiding its overall top-line performance. Analysts’ projections also suggest that the company is expected to surpass the fourth-quarter sales target of $65 billion. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is currently pegged at $65.56 billion, calling for a year-over-year surge of 66.7%.
NVIDIA’s Competitors in the AI Data Center Space
Advanced Micro Devices, Inc. (AMD - Free Report) and Intel Corporation (INTC - Free Report) are two major companies that are competing closely with NVIDIA in the AI data center space.
Advanced Micro Devices is gaining traction with its MI300 series accelerators, which are designed to handle training and inference for large AI models. AMD’s chips have attracted interest from major cloud providers seeking diversification beyond NVIDIA’s ecosystem. While Advanced Micro Devices’ software stack is still developing, its performance and pricing advantages make it a credible alternative.
Intel is also reasserting its presence with the Gaudi series of AI accelerators. The company is positioning Gaudi3 as a cost-effective and scalable option for AI data centers, targeting enterprise clients looking for flexibility. Intel’s broad reach in CPUs and server infrastructure helps it integrate AI solutions more easily into existing systems.
NVIDIA’s Price Performance, Valuation and Estimates
Shares of NVIDIA have risen around 34.6% over the past year compared with the Zacks Semiconductor – General industry’s gain of 36%.
NVIDIA One-Year Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 25.36, below the industry’s average of 28.62.
NVIDIA Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NVIDIA’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 55.9% and 57%, respectively. Estimates for fiscal 2026 have remained unchanged at $4.66 per share in the past 60 days. Earnings estimates for fiscal 2027 have been revised upward by 2 cents to $7.32 per share in the past 30 days.
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Image: Bigstock
Will Data Center Unit Help NVIDIA Reach Its $65B Q4 Revenue Goal?
Key Takeaways
NVIDIA Corporation (NVDA - Free Report) is set to report its fourth-quarter fiscal 2026 results on Feb. 25, and it would be no surprise if the company reaches another sales milestone and surpasses the $65 billion target. NVDA has been setting new sales records for the past few quarters. In the last reported financial results for the third quarter of fiscal 2026, its revenues reached a new record of $57.01 billion, reflecting a 62% year-over-year increase.
NVIDIA is optimistic that the growth momentum will continue as it again targets record revenues of $65 billion in the fourth quarter. The key driver behind this outlook is its booming data center business, which continues to power the company’s growth amid the global buildout of artificial intelligence (AI) infrastructure. In the third quarter of fiscal 2026, the data center business unit reported $51.22 billion in revenues, up 66% from last year.
The segment reached new highs as demand for accelerated computing, generative AI, and large-scale model training continued to rise across cloud providers and enterprise customers. Much of the momentum came from the rapid adoption of the GB300 platform and wider deployment of NVIDIA’s networking products, including NVLink and Spectrum-X. With hyperscalers racing to expand AI capacity, NVIDIA remained a key beneficiary of record spending on high-performance infrastructure.
The near-term outlook still appears solid, with the company expecting further strength from Blackwell shipments and expanding orders across cloud, sovereign AI and enterprise AI projects. NVIDIA also sees the growing adoption of agentic AI, long-context workloads and advanced inference systems, all of which depend on high-performance graphics processing unit clusters, as key catalysts for long-term growth. The Zacks Consensus Estimate for the data center segment’s fourth-quarter revenues is pegged at $58.72 billion, indicating a year-over-year increase of 65%.
The growing demand for the company’s AI chips used in data centers is likely to continue aiding its overall top-line performance. Analysts’ projections also suggest that the company is expected to surpass the fourth-quarter sales target of $65 billion. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is currently pegged at $65.56 billion, calling for a year-over-year surge of 66.7%.
NVIDIA’s Competitors in the AI Data Center Space
Advanced Micro Devices, Inc. (AMD - Free Report) and Intel Corporation (INTC - Free Report) are two major companies that are competing closely with NVIDIA in the AI data center space.
Advanced Micro Devices is gaining traction with its MI300 series accelerators, which are designed to handle training and inference for large AI models. AMD’s chips have attracted interest from major cloud providers seeking diversification beyond NVIDIA’s ecosystem. While Advanced Micro Devices’ software stack is still developing, its performance and pricing advantages make it a credible alternative.
Intel is also reasserting its presence with the Gaudi series of AI accelerators. The company is positioning Gaudi3 as a cost-effective and scalable option for AI data centers, targeting enterprise clients looking for flexibility. Intel’s broad reach in CPUs and server infrastructure helps it integrate AI solutions more easily into existing systems.
NVIDIA’s Price Performance, Valuation and Estimates
Shares of NVIDIA have risen around 34.6% over the past year compared with the Zacks Semiconductor – General industry’s gain of 36%.
NVIDIA One-Year Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 25.36, below the industry’s average of 28.62.
NVIDIA Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NVIDIA’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 55.9% and 57%, respectively. Estimates for fiscal 2026 have remained unchanged at $4.66 per share in the past 60 days. Earnings estimates for fiscal 2027 have been revised upward by 2 cents to $7.32 per share in the past 30 days.
Image Source: Zacks Investment Research
NVIDIA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.