# WARNING: If You Hold NVIDIA Stock (NVDA)... GET READY Source: https://www.youtube.com/watch?v=IVSQ5oVt1iA Recap page: https://rapidrecap.app/video/IVSQ5oVt1iA Generated: 2025-11-26T20:34:11.786+00:00 --- ## Quick Overview NVIDIA stock remains a strong buy despite its recent high valuation because its next-generation AI hardware, particularly the Blackwell NVL72 system, promises 10x performance improvements in inference, drastically lowering the cost per token and supporting an explosion in AI use cases, making it the most valuable company on the analyst's list. **Key Points:** - NVIDIA reported Q3 FY26 revenue of $57.0B, up 22% sequentially, with Data Center revenue hitting $51.22B (88% of total revenue), showing 25% quarter-over-quarter growth. - Blackwell NVL72 systems offer 10x performance improvement over Hopper, achieving 10x lower cost per token and supporting 3x to 6x more users for the same power budget. - The Blackwell/Rubin revenue visibility extends to over half a trillion dollars cumulatively through the end of CY2026, exceeding Hopper's lifetime revenue by more than 5x. - NVIDIA's Data Center networking revenue grew to $8.2B, exceeding gaming revenue (9% of total) and establishing NVIDIA as the world's largest networking business. - NVIDIA's forward Price-to-Earnings (PE) ratio of 28.7x is significantly lower than peers like AMD (56.2x) and Broadcom (64.5x), despite NVIDIA being the most valuable company. - The analyst strongly recommends buying NVDA stock now, predicting it will become the world's first $10 trillion company within the next couple of years. - The video features an interview with Dion Harris, NVIDIA's Sr. Director of HPC, Cloud, and AI Infrastructure GTM, discussing these performance and cost metrics. ![Screenshot at 1:21: slide detailing record revenue growth, platform shifts \(Blackwell Ultra\), and $0.5 trillion visibility into Blackwell and Rubin revenue through CY2026.](https://ss.rapidrecap.app/screens/IVSQ5oVt1iA/00-01-21.png) **Context:** This video analyzes NVIDIA's latest earnings report, focusing on the exponential growth driven by its Data Center business and the disruptive potential of its upcoming Blackwell architecture, specifically the NVL72 system. The presenter contrasts current performance metrics (Hopper) with projected performance (Blackwell) to argue for continued stock appreciation, despite high market expectations. The analysis also touches upon broader AI market growth and how next-generation hardware efficiency translates directly into lower operational costs for data centers. ## Detailed Analysis The video analyzes NVIDIA's recent earnings, confirming massive growth, particularly in the Data Center segment, which accounted for $51.22B (88%) of the $57.0B total revenue in Q3 FY26, representing a 25% quarter-over-quarter increase. The core argument for continued investment hinges on the Blackwell NVL72 architecture, which promises a 10x performance leap over Hopper in terms of Token Throughput per Megawatt and 10x lower cost per token for inference workloads, allowing data centers to support 3x to 6x more users for the same power. This efficiency gain is projected to drive Blackwell and Rubin cumulative revenue past half a trillion dollars by the end of CY2026, over 5x Hopper's lifetime revenue. Furthermore, NVIDIA's networking segment is now the world's largest, generating $8.2B, surpassing gaming revenue. Despite the massive scale, NVIDIA's Price-to-Earnings (PE) ratio of 28.7x is shown to be relatively cheap compared to peers like AMD (56.2x) and Broadcom (64.5x), suggesting the stock is not yet fully valued relative to its growth. The video concludes that NVIDIA is poised to become the world's first $10 trillion company. ### NVDA Q3 FY26 Earnings & Revenue - Record sequential revenue growth of $10B; Q3 FY26 revenue reached $57.0B vs $35.1B in Q3 FY25 - Data Center revenues hit $51.22B, growing 25% QoQ and 66% YoY. ### Blackwell Performance Leap - Blackwell NVL72 offers 10x performance (throughput, perf/dollar, perf/watt, revenues) over Hopper for AI inference - Blackwell systems enable 3x to 6x more users for the same power. ### Future Revenue Visibility - Visibility into over $0.5 trillion in cumulative Blackwell and Rubin revenue through CY2026, which is more than 5x Hopper's lifetime revenue. ### Business Segment Strength - Data Center Compute revenue reached $43.0B; Networking revenue hit $8.2B (up 164% YoY), making it the largest networking business globally. ### Valuation vs. Peers - NVIDIA's PE ratio is 28.7x, trading at half the multiple of peers like AMD (56.2x) and Broadcom (64.5x), despite having higher projected earnings growth (25.18%). ### AI Market Context - Global AI market projected to grow at a 38.5% CAGR to $10.173T by 2034, emphasizing sustained demand for NVIDIA's infrastructure. ### Interview Insights (Dion Harris) - The value of Blackwell is embedding AI capabilities into everyday applications, driving demand that reduces per-token costs by 10x, making AI more accessible. ![Screenshot at 0:00: The video opens on the NVIDIA AI-Q Blueprint interface, showing an avatar of Jensen Huang ready to receive a command.](https://ss.rapidrecap.app/screens/IVSQ5oVt1iA/00-00-00.png) ![Screenshot at 0:26: The host introduces the four key topics for the video: NVDA Earnings, NVIDIA GPUs, NVDA Valuation, and NVDA Stock outlook.](https://ss.rapidrecap.app/screens/IVSQ5oVt1iA/00-00-26.png) ![Screenshot at 1:21: Slide showing revenue growth, highlighting the jump from $35.1B \(Q3 FY25\) to $57.0B \(Q3 FY26\), along with key takeaways like Blackwell Ultra ramping up.](https://ss.rapidrecap.app/screens/IVSQ5oVt1iA/00-01-21.png) ![Screenshot at 2:04: Slide detailing NVIDIA's four major business units \(Data Center, Gaming, Professional Visualization, Automotive\) with their FY25 revenue contribution percentages.](https://ss.rapidrecap.app/screens/IVSQ5oVt1iA/00-02-04.png) ![Screenshot at 6:51: Diagram comparing Point-to-Point \(8 GPUs x 9 Servers via Ethernet\) versus All-to-All NVLink Switch \(72 GPUs x 1 Rack\) architecture for Mixture-of-Experts models, illustrating Blackwell's superior connectivity.](https://ss.rapidrecap.app/screens/IVSQ5oVt1iA/00-06-51.png)