Nvidia Stock Rockets 7% After Blowout Earnings | NVDA Earnings Explained

The moment everyone has been watching arrived with full fireworks. When Nvidia Corporation reported its third-quarter results for fiscal 2026 on November 19 2025, the numbers looked less like a normal earnings update and more like a rocket launch taking off. Revenue surged, margins held up, and the market cheered; pushing the stock up over 7% as Nvidia closed with 2.85% gain and is now further up by over 5% in after-hours trading as per Google Finance as traders and long-term believers both stepped back in and said: yes, we’re still very much in the AI game.

Let’s break down this blog and see exactly what’s happening under the hood, why the stock moved, what to watch for, and whether this is just the next chapter in the story for Nvidia or something more.

NVDA Earnings Snapshot; Q3 FY26

Here’s a table summarising the key metrics from the quarter:

Source: Nvidia’s Earnings Release

One thing stands out is that this was no ordinary quarter. Revenue up 62% YoY is extraordinary for a company of this size, meaning Nvidia isn’t just growing, it’s comfortably accelerating. The data-centre business, which sits at the heart of the AI infrastructure push, drove the lion’s share of that. Gross margin dipped slightly by 1.2 points but remained in the high-70s, signalling that scale is not coming at the cost of profitability. The EPS jump is material, and the forward guidance to ~$65 billion for Q4 gives the street something to cheer about.

Why Did the Nvidia Stock Jump?

There are several reasons why the stock reacted so positively:

• Massive demand for AI infrastructure: CEO Jensen Huang’s quote hit the nail: “Blackwell sales are off the charts, and cloud GPUs are sold out,” pointing out that the new generation of infrastructure chips are in very high demand.
• Data-centre dominance: The $51.2 billion data-centre revenue shows that Nvidia is the go-to supplier for hyperscalers building out AI compute. Given the scale of the opportunity (think large language models, generative AI, inference workloads), investors see this as a continuing tail-wind rather than a one-off spike.
• Strong forward guidance: The expectation of around $65 billion revenue in Q4 beats what many had anticipated, which gives confidence that the momentum carries on.
• Strategic positioning & moat: Nvidia is increasingly less a GPU-maker and more the platform of choice for AI compute. That kind of leadership tends to command premium valuations, especially when growth is real.
• Relief for the market: With so much talk about an “AI bubble”, seeing one of its flagship stocks not just deliver but exceed expectations gives the broader investor community comfort.

You could say Nvidia’s earnings didn’t just compute, they accelerated, just like their new Blackwell chips themselves.

What to Look Out for With Nvidia?

Even with a strong quarter behind them, here are key factors to keep an eye on:

• Supply constraints and ramp-up: With demand so high, Nvidia will need to manage manufacturing, logistics, and any bottlenecks (e.g., semiconductor supply, packaging, system integration) so that future growth isn’t constrained.
• Geopolitical and export risks: The export control environment, especially for China and other regions, remains a risk. Nvidia noted earlier that advanced chip export restrictions remain a headwind.
• Margin sustainability: While margins are high now, continued investment, higher component costs or pricing pressure could challenge that. Keeping a strong margin profile will be important.
• Valuation and expectations: When a company grows as fast as this, the market tends to price in high expectations. Any hiccup or slow-down could trigger a sharper reaction than normal.
• Execution beyond core business: Nvidia’s ambitions go into automotive, robotics, visualization and more. Investors will watch how well those non-data centre segments scale. From the release: gaming revenue was $4.3 billion (up 30% YoY) and automotive/robotics were up ~32% from a year ago.

Analyst Expectations & CEO Jensen Huang’s Commentary on Nvidia

Analysts were looking for roughly $1.25 per share in EPS and about $55 billion in revenue, so Nvidia beat those estimates comfortably.

In his remarks, Jensen Huang emphasised that “compute demand keeps accelerating and compounding across training and inference, each growing exponentially. We’ve entered the virtuous cycle of AI.”

That language is loaded for investors: “virtuous cycle” suggests that as AI grows, Nvidia’s business grows, which then fuels more AI, and so on. It’s not just a linear growth story, it’s potentially compounding.

From the analyst side, many are raising their bullish views, citing the depth of demand and the strategic partnerships Nvidia has announced (with major cloud providers and foundational-model makers) that lock in long-term revenue streams.

Final Thoughts on Nvidia

If you were wondering whether the AI train had already left the station and whether NVDA was simply riding yesterday’s momentum, this quarter suggests otherwise. The engine is still revving, the tracks ahead look clear, and the conductor (Jensen Huang) is saying “all aboard”.

Of course, growth of this magnitude comes with its own set of expectations and risks. But for now, Nvidia’s stellar Q3 shows a company that not only delivered but reinforced its place at the heart of the AI revolution and in doing so, gave investors a tangible reason to cheer.

The stock may have rocketed on the news, but for investors who believe in the long view, this might be less like a short-term jump and more like a strong re-affirmation of the journey ahead.

Disclaimer:

The content is meant for education and general information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. The securities quoted are exemplary and are not a recommendation. This in no way is to be construed as financial advice or a recommendation to invest in any specific stock or financial instrument. Readers are encouraged to verify the exact numbers and financial data from official sources such as company filings, earnings reports, and financial news platforms and to conduct their own research, and consult with a registered financial advisor before making any investment decisions. All disputes in relation to the content would not have access to an exchange investor redressal forum or arbitration mechanism. INDmoney Global (IFSC) Private Limited,Registered office address: Office No. 507, 5th Floor, Pragya II, Block 15-C1, Zone-1, Road No. 11, Processing Area, GIFT SEZ, GIFT City, Gandhinagar – 382355.