Nvidia has experienced a remarkable resurgence, adding over $1 trillion to its market capitalization within a two-month span. This surge is fueled by several key factors:f
- Strong Financial Performance: In Q1 FY2026, Nvidia reported revenue of $44.1 billion, marking a 69% year-over-year increase. The data center segment alone contributed $39.1 billion, up 73% from the previous year.
- Analyst Confidence: Jefferies added Nvidia to its "Franchise Picks," citing the company's dominant role in AI accelerators and projecting gross margins could rise to between 70% and 80% in 2025.
- Global Partnerships: Nvidia secured a significant deal with Saudi AI firm Humain, supplying 18,000 AI chips as part of a broader $600 billion Saudi pledge toward U.S. infrastructure and AI initiatives.
Despite facing challenges such as U.S. export restrictions impacting sales to China, Nvidia's strategic moves and robust demand for AI infrastructure position it favorably for sustained growth.
