By Trefis Team
Publication Date: 2026-01-26 16:57:00
NVIDIA (NVDA)’s share price soared by 73%, in the past nine months, driven by a potent combination of AI-generated demand in data centers and impressive Q3 earnings.
SANTA CLARA, CALIFORNIA – MAY 30: An exterior view of the NVIDIA headquarters on May 30, 2023 in Santa Clara, California. Chipmaker NVIDIA reached a $1 trillion market cap at the open bell of the NYSE on Tuesday morning. The company is forecasting second quarter sales of $11 billion, 50 percent higher than analyst estimates of $7.15 billion. (Photo by Justin Sullivan/Getty Images)
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Although margins decreased slightly, a notable rise in revenue and a growing P/E multiple signify the market’s trust in its GPU leadership and advancements in the automotive sector. Let’s explore the narrative behind this increase.
The following is an analytical assessment of stock performance divided into significant contributing factors.
What’s going on here? The stock experienced a 73% increase, spurred by a 43% uptick in revenue and a 26% rise in P/E multiple, despite a 5.1% decrease in net margin. Let’s delve into the factors responsible for these changes.
This Is Why NVIDIA Stock Changed
- AI Data Center Growth: Continued strong demand for AI chips led to substantial revenue growth in data centers.
- Impressive Q3 FY2026 Earnings: Strong financial results were reported in November 2025, showing revenue up 62%, surpassing market forecasts.
- Growth in Automotive Sector: Expanding collaborations and new AI algorithms…
