New Delhi, September 16 (Patrika English News): NVIDIA Corporation (NASDAQ: NVDA) continues to strengthen its position as the backbone of the global AI infrastructure boom, as bullish investors highlight robust financials, growing demand, and expanding market opportunities.
According to a recent thesis shared on Compounding Your Wealth by Sergey, NVIDIA’s growth story remains intact, supported by its AI dominance, CUDA ecosystem, and expanding total addressable market (TAM). As of September 2, NVDA shares were trading at $170.78, with trailing and forward P/E ratios of 48.66 and 38.02 respectively, according to Yahoo Finance.
The company delivered another record quarter, reporting revenue of $46.7 billion — up 56% year-over-year and 6% sequentially — exceeding analyst estimates by 2.7%. Earnings per share came in at $1.05, 5% above expectations.
Segment Performance
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Data Center: $41.1 billion in revenue, up 56%, fueled by broad adoption of the Blackwell architecture.
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Gaming: $4.3 billion, up 49%, led by GeForce GPUs and RTX 5060 sales.
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Automotive: $586 million, up 69%, driven by the Thor platform.
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Networking: $7.3 billion, nearly doubling, with Spectrum X crossing $10 billion in annualized revenue.
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Professional Visualization & OEM: Smaller contributions, reflecting cyclical trends.
Geographic Trends
U.S. revenue surged 80% to $23.5 billion, accounting for more than half of total sales. In contrast, China revenue fell 25% to $2.8 billion due to regulatory restrictions. Taiwan and other international markets showed solid growth.
Margins and Shareholder Returns
GAAP gross margin stood at 72.4%, with operating margin at 60.8%, both slightly lower year-over-year due to higher compute and infrastructure costs. Free cash flow margin dipped to 28.8%. However, shareholder returns remained strong at $10 billion, with NVIDIA authorizing a new $60 billion share repurchase program.
Outlook
Management guided Q3 revenue at $54 billion, well above consensus, supported by accelerating Blackwell deployments, networking demand, and enterprise AI adoption. Despite ongoing challenges in China and rising expenses, NVIDIA’s growth drivers include sovereign AI, robotics, and enterprise workloads.
Analysts and investors, including Jim Cramer, continue to highlight NVIDIA’s dominance in AI GPUs, with CoreWeave Inc. seen as one of the biggest beneficiaries of its booming demand.
Since April 2025, when Compounding Your Wealth first outlined a bullish case for NVIDIA, shares have gained roughly 54%. The thesis remains intact, with Blackwell architecture momentum providing fresh tailwinds.
