NVIDIA (NVDA) $57B Q Revenue Report: Reddit Debate on Fundamentals vs. Valuation

This analysis is based on a Reddit discussion and supporting market data [0]. NVIDIA reported a landmark $57B quarterly revenue (62% YoY growth), $31.8B net income (59% YoY), and $1.30 EPS (60% YoY), alongside $65B next quarter guidance with a 75% gross margin—signaling sustained AI-driven demand. The Reddit debate split into key camps: bullish participants argued NVDA’s forward P/E (24x for FY2026, 26x for FY2027) was reasonable, citing continued growth potential [0]. Bearish views emphasized growing competition (Alphabet, AMD, Intel, Chinese chipmakers) eroding NVDA’s market moat, coupled with concerns over the current P/E of 44.31x [0]. Additional discussion noted confusion over NVDA’s fiscal year labeling (FY2026 is 3 quarters complete), which led to varying forward P/E calculations [0]. Market data shows NVDA closed at $177 on the event date (11/28/2025) with a $4.36T market cap; analyst consensus remains “buy” with a $250 target price, reflecting long-term confidence [0]. Relevant news includes NVDA’s $2B Synopsys investment (which caused a short-term price dip but reaffirmed buy ratings), Broadcom/Google’s TPUv7 (a potential 40% cheaper AI chip competitor), and SoftBank’s partial NVDA share sale while maintaining AI bullishness [0].

1. Fiscal Year Labeling Creates Valuation Confusion
   : NVDA’s FY2026 (3 quarters complete) vs. FY2027 forward P/E calculations (24x vs. 26x) have led to mixed narrative framing on Reddit, highlighting how reporting semantics can cloud investor perception [0].
2. Market Narratives Shift with Price Volatility
   : Reddit discussions mirror broader market behavior, where bullish/bearish sentiment often aligns with short-term price movements rather than consistent fundamental analysis [0].
3. Competitive Threats vs. Analyst Optimism
   : Despite bearish concerns over emerging competitors (TPUv7, AMD, Intel), analyst consensus for NVDA (target $250) suggests the market still prioritizes its established AI leadership and growth trajectory [0].

• Risks
  : Intensifying competition from cloud providers and chipmakers could erode NVDA’s market share and margins; short-term volatility driven by shifting market narratives; fiscal year labeling confusion leading to valuation misinterpretations [0].
• Opportunities
  : Sustained AI demand reflected in 62% YoY revenue growth and $65B guidance; analyst consensus “buy” with 39.7% upside to target price; ongoing leadership in the AI chip ecosystem [0].

NVDA reported a record $57B quarterly revenue (62% YoY) with strong guidance ($65B next quarter, 75% gross margin). Reddit debates center on forward P/E rationality (24-26x vs. current 44.31x), competitive risks, and narrative volatility. Market data shows a 11/28/2025 closing price of $177, $4.36T market cap, and analyst target of $250. News includes a $2B Synopsys investment, TPUv7 competition, and SoftBank’s share sale while remaining AI-bullish. No prescriptive investment recommendations are provided.