Nvidia Corporation
(NDQ: NVDA)Share Price and News
Overview of Nvidia
Nvidia is a company in the GPU-accelerated computing space. GPU is short for graphics processing units and these are computer chips in their own right as well as chip components. These are designed to handle and accelerate graphics workloads and display graphics content to the extent that Central Processing Units (CPUs) could not at the time. This enabled the growth of PC gaming market.
These days, GPUs are behind modern AI, because they act as the ‘brain’ of computers, robots and self-driving cars. In other words, GPUs help them operate by ensuring they can comprehend real-world inputs.
Nvidia's Company History
Nvidia was founded in 1993 by Jensen Huang, Chris Malachowsky and Curtis Preim. The company's early focus was on graphics processing units (GPUs) for the gaming market, and its first product, the NV1, launched in 1995. It was the introduction of the GeForce 256 in 1999 — marketed as the world's first GPU — that truly put NVIDIA on the map, transforming how computers rendered graphics and establishing the company as the dominant force in the consumer graphics industry.
Over the years, Nvidia has expanded beyond gaming into AI, deep learning, and data centre technologies. It has also continued to enhance its GPUs. During the 2000s, NVIDIA expanded its reach beyond gaming with its CUDA parallel computing platform, launched in 2006. CUDA allowed developers to harness the raw processing power of GPUs for general-purpose computing tasks, a move that would prove visionary. While competitors focused on graphics, NVIDIA quietly built an ecosystem for scientific computing, simulation, and eventually artificial intelligence.
Two important years in the 2010s were 2012, when it powered the breakthrough AlexNet neural network, and in 2018 when it launched the first GPU capable of real-time ray tracing. By the time large language models and generative AI captured global attention in the early 2020s, NVIDIA had an insurmountable head start — not just in silicon, but in software, tooling, and developer relationships built over two decades.
Today, NVIDIA operates across data centre AI infrastructure, professional visualisation, automotive, and gaming. Under Jensen Huang's continued leadership, the company has grown from a niche graphics chipmaker into one of the most valuable corporations on earth, a position built on the rare combination of technological foresight and disciplined execution.
Future Outlook of Nvidia (NDQ: NVDA)
NVIDIA's financial trajectory over the past two years has been nothing short of historic. For fiscal year 2026 (ending January 2026), the company reported full-year revenue of $215.9 billion, a 65% increase on the prior year. This followed fiscal 2025's equally staggering performance, when revenue hit $130.5bn — itself a 114% jump year-on-year. The engine behind this growth is unmistakably NVIDIA's data centre division, which now accounts for over 91% of total sales, driven by insatiable global demand for its AI chips.
The most recent quarterly result, for Q4 fiscal 2026, saw revenue reach a record $68.1bn, up 73% from the same period a year earlier. Earnings per diluted share came in at $1.62 on an adjusted basis, comfortably ahead of analyst expectations of $1.53. Gross margins for the quarter reached 75%, reflecting the premium pricing power NVIDIA commands in a market where supply remains constrained relative to demand.
Looking ahead, management's guidance for Q1 fiscal 2027 is for revenue of approximately $78bn — a figure that again surpassed Wall Street forecasts of around $72.6bn. Notably, this outlook excludes any data centre revenue from China, following US government export restrictions on NVIDIA's H20 chips. The company is expanding its supply chain into the United States and Latin America to reduce dependence on Asian manufacturing and add resilience.
NVIDIA is also ramping production of its next-generation Vera Rubin platform, the successor to Blackwell, which CEO Jensen Huang says will deliver a tenfold improvement in performance per watt. With hyperscalers collectively projected to spend close to $700bn on AI infrastructure in the coming year, the demand backdrop for NVIDIA's products remains extraordinarily strong, and the company appears well positioned to sustain its growth momentum.
Is Nvidia a Good Stock to Buy?
The case for owning NVIDIA shares is compelling, though it comes with caveats that serious investors should weigh carefully. On the bull side, NVIDIA occupies a position of near-monopolistic dominance in the AI accelerator market. Its CUDA software ecosystem, built over nearly two decades, creates a switching cost that competitors — including AMD, Intel, and a growing array of custom silicon projects from Google, Amazon, and Microsoft — have so far been unable to meaningfully erode. When the world's largest technology companies are racing to build AI infrastructure and they overwhelmingly choose your chips, the competitive moat is real and deep.
The financial results speak for themselves. Revenue has more than doubled in consecutive years, gross margins are running at around 75%, and management's forward guidance has consistently beaten analyst expectations. The company is also returning substantial capital to shareholders, having bought back tens of billions of dollars in stock and maintaining a regular dividend programme.
However, the risks are meaningful. NVIDIA's valuation remains elevated relative to traditional metrics, meaning the stock already prices in a great deal of future success. Any slowdown in AI capital expenditure by the major cloud providers, or a shift in customer preference toward custom-designed chips, could weigh heavily on the share price. Geopolitical risk is another live concern — US export restrictions have already curtailed NVIDIA's ability to sell into China, costing the company billions in revenue, and further restrictions cannot be ruled out.
There is also the question of cyclicality. NVIDIA has experienced sharp boom-and-bust cycles before, and while the structural AI tailwind appears more durable than previous technology waves, demand patterns in semiconductors can turn quickly.
For long-term investors with a high risk tolerance and conviction in the AI infrastructure buildout, NVIDIA remains a core holding. Those more sensitive to valuation or geopolitical risk may prefer to accumulate on weakness rather than chase current prices.
Our Stock Analysis
Nvidia Says US$1T by 2027, Here’s the Hardware Shift It’s Banking On
Nvidia’s US$1T Goal Just Raised the Stakes for Inference Nvidia CEO Jensen Huang has just held the company’s biggest annual…
Nvidia (NASDAQ:NVDA) $216b Revenue, 65% Growth, Still Pushing the Frontier
Rubin Targets 10x Cheaper Inference, That’s the Real Story Nvidia delivered an exceptional quarter and a standout full-year result, which…
Why Are Tech and SaaS Stocks Selling Off Right Now?
Why Are Tech and SaaS Stocks Selling Off Right Now? You have probably felt the brute force of this sell-off…
Nvidia’s Back in China, But Uncle Sam Takes a 25% Cut
NVDA Re-enters China Under New Rules President Trump has announced that the US will allow Nvidia to export its H200…
NVIDIA’s Blackwell Chips Ignite Record Demand in Q3
NVIDIA’s Blackwell Surge Tech investors and growth-focused funds will be breathing a sigh of relief after NVIDIA (NASDAQ: NVDA) delivered…
The Exclusive Club of Trillionaire Companies: Here are the 11 listed stocks above a trillion dollars!
Nvidia had been in the club of Trillionaire Companies since May 2023 when it crossed US$1 trillion but is now…
Frequently Asked Questions
Nvidia does not currently focus on high dividend payouts, as it reinvests its profits in R&D and strategic growth initiatives. Its dividend yield remains relatively low compared to other tech giants.