"Revenue increased 73% to $68 billion, the second straight acceleration, and non-GAAP net income rose 82% to $1.62 per diluted share. CEO Jensen Huang said the AI boom is still in full swing, adding, 'Compute demand is growing exponentially -- the agentic AI inflection point has arrived.'"
"Wall Street has underestimated AI capital expenditures in every quarter for the last two years. Last October, the consensus estimate said the top five hyperscalers would increase capex spending 19% in 2026. However, guidance from those five companies implies capex spending will actually increase 60% this year."
The Nasdaq Composite averaged 17% annual returns over the past decade through cloud computing, digital advertising, and AI growth. Currently down 4% year-to-date, the index needs 21% gains by December to match its historical average. Wall Street forecasts technology and consumer discretionary sectors will advance 33% and 22% respectively, with these sectors comprising 80% of Nasdaq performance, making the target achievable. Nvidia demonstrates strong fundamentals with 73% revenue growth and 82% net income growth, while CEO Jensen Huang confirms the AI boom continues with exponential compute demand. Despite sustainability concerns, Wall Street has consistently underestimated AI capital expenditures, with hyperscalers planning 60% capex increases in 2026 versus the previously estimated 19%.
Read at The Motley Fool
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