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NVDA's Blackwell Platform Boosts its Top-Line Growth: What's Ahead?
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Key Takeaways
NVDA's Blackwell platform drove 75% data center revenue growth, now 91.5% of total revenues.
NVDA gaming and pro visualization rose 47% and 159%, respectively, fueled by Blackwell-driven demand.
NVIDIA unveiled Rubin chips and posted 73% revenue growth, with rising margins and estimates.
NVIDIA Corporation (NVDA - Free Report) is benefiting from growing shipments of the Blackwell GPU computing platforms that are used for the training and inference of large language models, recommendation engines and generative AI applications. This has led to Data Center revenues to grow 75% year over year to $62.31 billion, now constituting 91.5% of the top line by the end of the fourth quarter of fiscal 2026.
However, the Blackwell-backed growth has not remained limited to its data center segment. NVDA’s gaming segment grew 47% year over year, backed by increased traction from gamers, creators and AI enthusiasts as Blackwell offers faster frame rates, 4th-generation ray tracing, 8K gaming and DLSS 4 with AI-powered multi-frame generation for fully immersive gaming.
NVIDIA’s Professional Visualization revenues, though a small contributor, also gained from the rising demand for NVIDIA’s Blackwell platform, which propelled this segment by 159% year-over-year growth rate to $1.32 billion. NVDA is also gaining from expanding margins due to Blackwell ramping with an improved mix and cost structure. NVIDIA’s non-GAAP gross margin of 75.2% reflects an improvement of 170 basis points (bps) year over year in the fourth quarter of fiscal 2026.
Blackwell took a leap in performance from its predecessor, Hopper, by integrating NVLink 72 architecture and CUDA software optimization. The Blackwell architecture has been at the core of revenue growth for a while now, and NVIDIA is planning to release another architecture, Rubin.
NVDA has already unveiled six new chips under this architecture, comprising the Vera CPU, Rubin GPU, NVLink 6 Switch, ConnectX-9, SuperNIC, BlueField-4 DPUs and Spectrum-6 Ethernet Switch. NVIDIA’s financials remain rock solid, as substantiated by the results of the fourth quarter of fiscal 2026, where revenues jumped 73% from the year-ago quarter. Given the current trajectory and upcoming products, NVDA remains a long-term investment choice.
How Competitors Fare Against NVIDIA
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 16.2% year to date compared with the Zacks Semiconductor – General industry’s appreciation of 17.9%.
NVDA YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, NVDA trades at a forward price-to-sales ratio of 13.78, lower than the industry’s average of 11.65.
NVDA Forward 12-Month (P/S) Performance Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 68.97% and 32.12%, respectively. Estimates for fiscal 2027 and 2028 have been revised upward in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
NVDA's Blackwell Platform Boosts its Top-Line Growth: What's Ahead?
Key Takeaways
NVIDIA Corporation (NVDA - Free Report) is benefiting from growing shipments of the Blackwell GPU computing platforms that are used for the training and inference of large language models, recommendation engines and generative AI applications. This has led to Data Center revenues to grow 75% year over year to $62.31 billion, now constituting 91.5% of the top line by the end of the fourth quarter of fiscal 2026.
However, the Blackwell-backed growth has not remained limited to its data center segment. NVDA’s gaming segment grew 47% year over year, backed by increased traction from gamers, creators and AI enthusiasts as Blackwell offers faster frame rates, 4th-generation ray tracing, 8K gaming and DLSS 4 with AI-powered multi-frame generation for fully immersive gaming.
NVIDIA’s Professional Visualization revenues, though a small contributor, also gained from the rising demand for NVIDIA’s Blackwell platform, which propelled this segment by 159% year-over-year growth rate to $1.32 billion. NVDA is also gaining from expanding margins due to Blackwell ramping with an improved mix and cost structure. NVIDIA’s non-GAAP gross margin of 75.2% reflects an improvement of 170 basis points (bps) year over year in the fourth quarter of fiscal 2026.
Blackwell took a leap in performance from its predecessor, Hopper, by integrating NVLink 72 architecture and CUDA software optimization. The Blackwell architecture has been at the core of revenue growth for a while now, and NVIDIA is planning to release another architecture, Rubin.
NVDA has already unveiled six new chips under this architecture, comprising the Vera CPU, Rubin GPU, NVLink 6 Switch, ConnectX-9, SuperNIC, BlueField-4 DPUs and Spectrum-6 Ethernet Switch. NVIDIA’s financials remain rock solid, as substantiated by the results of the fourth quarter of fiscal 2026, where revenues jumped 73% from the year-ago quarter. Given the current trajectory and upcoming products, NVDA remains a long-term investment choice.
How Competitors Fare Against NVIDIA
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 16.2% year to date compared with the Zacks Semiconductor – General industry’s appreciation of 17.9%.
NVDA YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, NVDA trades at a forward price-to-sales ratio of 13.78, lower than the industry’s average of 11.65.
NVDA Forward 12-Month (P/S) Performance Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 68.97% and 32.12%, respectively. Estimates for fiscal 2027 and 2028 have been revised upward 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.