NVIDIA is proving that technological dominance and sustainability can coexist. The chipmaker delivered 62% revenue growth in fiscal Q3 of 2026.
Notably, it sourced 100% of its energy requirements from renewables and has excelled at the efficient use of natural resources.
The AI Infrastructure Giant Redefining Computing
NVIDIA (NVDA) operates as the world’s leading AI infrastructure provider, designing GPUs and complete systems that power everything from data centers to autonomous vehicles.
The company’s three massive platform shifts—accelerated computing replacing traditional CPUs, generative AI transforming applications, and agentic AI creating new markets—position it at the center of a computing revolution.
The business model is compelling: NVIDIA sells GPUs and complete rack-scale systems, then locks customers into its CUDA software ecosystem. This creates deep moats through switching costs, developer loyalty, and architectural advantages that compound over time.
VIDIA delivers the computing infrastructure powering AI’s expansion—from OpenAI’s GPT models to Meta’s recommendation systems to Tesla’s self-driving technology across every major cloud platform worldwide.
Financial Strength: Dominance, Execution, and Explosive Growth
NVIDIA stock combines category leadership with unprecedented growth momentum. The company’s Q3 fiscal 2026 performance demonstrates this power:
• Q3 FY26 revenue: $57 billion, up 62% year-over-year with record $10 billion sequential growth
• Data center revenue: $51.2 billion, up 66% driven by Blackwell ramp and networking surge
• Gross margin: 73.6% non-GAAP, expanding despite significant supply chain investments
• Free cash flow: On track for approximately $500 billion over the next two years
• Backlog visibility: $500 billion in Blackwell and Rubin revenue through the end of 2026
NVIDIA earns a perfect 100 Ziggma Score, ranking first among its peers in electronic equipment. Growth scores an exceptional 92, reflecting the company’s explosive top-line momentum. Profitability hits 100%, showcasing industry-leading margins that most tech companies can only dream of.
- The data center business is the key driver, with compute growing 56% and networking more than doubling.
- The Blackwell architecture accounted for roughly two-thirds of total Blackwell revenue as GB300 shipments ramped up to major cloud providers.
- Hopper, now in its 13th quarter, still generated $2 billion in revenue—a testament to NVIDIA’s architectural longevity.
- Gaming revenue reached $4.3 billion, up 30% as demand remained strong heading into the holidays.
- Professional visualization hit a record $760 million, up 56% driven by DGX Spark AI workstations.
- Automotive grew 32% to $592 million as self-driving solutions gained traction.
Management raised Q4 guidance to $65 billion in revenue (14% sequential growth) and expects gross margins of around 75%.
Looking ahead, input costs are rising, but the company is working to maintain mid-70s margins in fiscal 2027.
Positive Impact: Environmental Excellence With Room to Grow
NVIDIA demonstrates that computing power and environmental responsibility aren’t mutually exclusive. The company’s sustainability achievements are industry-leading.
- NVIDIA achieved 100% renewable electricity for its global operations in fiscal 2025—a landmark accomplishment for a company that consumes massive amounts of power.
- Climate action scores a near-perfect 97 out of 100, reflecting deep commitment to decarbonization.
- Sustainable resource use earns a perfect 100, highlighting efficient material use and circular-economy initiatives.
The technology itself delivers environmental benefits, as Blackwell GPUs offer over 50 times the energy efficiency of traditional CPUs for AI workloads.
As AI infrastructure scales, improvement in performance per watt translates directly into reduced energy consumption and lower emissions across the entire ecosystem.
However, the impact picture isn’t uniformly positive: fair labor practices score just 61 out of 100, suggesting areas needing attention in workforce management and supply chain oversight. Accountability scores only 38 out of 100, indicating governance and transparency gaps that conscientious investors should monitor.
That said, on balance Nvidia outscores its peers making it the top-performing company in Electronic Equipment when it comes to impact.
The Investment Thesis: Multiple Catalysts for Continued Dominance
NVIDIA offers several powerful drivers of sustained value creation.
Unmatched architectural moats: NVIDIA is the only platform running every major AI model—OpenAI, Anthropic, xAI, Google, Meta, and countless others.
The CUDA ecosystem, built over 25 years, creates switching costs that competitors simply cannot replicate. GPUs shipped six years ago still run at full utilization today thanks to continuous software improvements.
Three simultaneous platform shifts: Accelerated computing replacing CPUs addresses hundreds of billions in existing cloud spend.
Generative AI transforming applications like search and recommendations drives hyperscaler infrastructure investment.
Agentic AI, creating new markets—from coding assistants to autonomous systems, represents net new consumption with explosive growth trajectories.
Visibility and scale advantages: $500 billion in committed Blackwell and Rubin revenue through 2026 provides extraordinary visibility.
Major deals announced this quarter alone—400,000-600,000 GPUs to Saudi Arabia, up to 150,000 accelerators to AWS, and a 1-gigawatt commitment from Anthropic—demonstrate insatiable demand.
Annual innovation cadence: The Rubin platform, launching in the second half of 2026, delivers another X-factor performance improvement over Blackwell.
This relentless innovation keeps NVIDIA multiple generations ahead of the competition while extending the useful life of the installed base through software optimization.
Ecosystem expansion strategy: Strategic investments in OpenAI, Anthropic, and other frontier AI companies aren’t just about financial returns—they’re partnerships that ensure every major AI model runs optimally on NVIDIA architecture. This expands CUDA’s reach while securing offtake for customers building AI infrastructure.
Valuation: Nvidia stock is trading at 27x forward earnings, below its 10-year average of 37x. Despite the market-thumping returns over the past decade, NVDA stock is reasonably valued in December 2025.
Why NVIDIA Belongs in Growth Portfolios
NVIDIA showcases a rare combination of technological leadership, financial excellence, and environmental commitment. The company’s perfect 100 Ziggma Score, 73%+ gross margins, reasonable valuation and explosive growth prove the business model works at unprecedented scale.
With $500 billion in visibility, structural advantages across three platform shifts, and environmental leadership through renewable energy and efficiency innovations, the stock offers compelling long-term potential.
For investors seeking exposure to AI’s infrastructure buildout—all while supporting a company committed to sustainable operations—NVIDIA represents an opportunity where computing’s future and environmental responsibility converge in ways few technology companies can match.