The AI Supercycle Isn’t Slowing Down, and Nvidia’s Compute Moat Just Got Deeper. Alex Sirois Fri, October 16, 2026 at 10:45 AM EDT 4 min read NVDA +0.16% AMD -3.18% INTC -3.05% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
NVDA revenue surged 106% to $96 billion, and Vera Rubin is set to be the fastest product ramp in NVIDIA's history.
AMD trades at a P/E of 212 versus NVDA's 44, while Intel's foundry lost $2.1 billion last quarter, making NVIDIA's valuation look compelling.
Jensen Huang admits some will call NVIDIA's $50 billion in AI lab investments and $279 billion in supply commitments 'circular financing.'
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and NVIDIA didn't make the cut. Enter your email to see the names that beat NVDA. The report is free. Enter your email and see if any of your stocks made the cut.
I have added to my NVIDIA (NASDAQ:NVDA) position after every earnings report for more than a year. This week, chip stocks sold off in a global tech rout on AI funding worries. Shares slipped 5.75% over the past week to $217.23, a decline that puts the fundamentals in focus.
NVIDIA sells the entire AI stack: GPUs, CPUs, networking, systems and the CUDA software layer. Each generation broadens the gap. As the CEO put it, "Now, compute is revenue." Demand still exceeds what NVIDIA can build. Management has "supply for 70%" growth in fiscal 2028, and "Our demand is much higher than that."
Growth keeps accelerating. Q2 FY2027 revenue reached $96.22 billion, up 105.8% YoY, the fourth consecutive quarter of faster growth. Over six quarters, EPS rose from $0.81 to $2.22 with a beat every time. Q3 guidance sits at $108.0 billion.
The advantage shows up in the margins. Non-GAAP gross margin hit 75.0%, return on equity runs 101.5% and return on invested capital 92.2%. Vera Rubin is worth $40 billion per gigawatt to NVIDIA, against $25 billion for Blackwell. Networking revenue rose 138% to $40.31 billion, so customers buy the whole stack.
Why Didn't NVDA Make The Top 10 List?
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
The report is free, and you can see why we think each stock is a top investment today.
Enter Your Email and See the Ten →
The balance sheet adds flexibility. Debt-to-equity stands at 0.073 with interest coverage of 503x. NVIDIA returned $26.0 billion in Q2 alone and has $99.0 billion left on its buyback authorization. The dividend yield of 0.019% is small, so the return story rests on compounding, and the quarterly payout already rose from $0.01 to $0.25. At a P/E of 44, NVIDIA trades at that multiple for this engine.
Advanced Micro Devices (NASDAQ:AMD) grew Data Center revenue 107%, which I respect. Still, it trades at a P/E of 212 and a price-to-free-cash-flow of 137, against NVIDIA's 54, and it guides to roughly 56% non-GAAP gross margin. NVIDIA pairs higher margins with a lower valuation multiple.
Intel (NASDAQ:INTC) posted 59% Data Center and AI growth, yet Intel Foundry lost $2.1 billion in the quarter and net debt runs 3.40 times EBITDA versus NVIDIA's 0.006. Intel remains a turnaround story.
The financing web worries me. NVIDIA has invested nearly $50 billion in frontier AI labs, carries guarantee obligations limited at $108.5 billion and supply commitments of $279 billion. Research labs backed by its balance sheet should make up "roughly a quarter of our business next year." The CEO admits "some will call this circular financing." If AI funding dries up, those commitments bite. China also sits outside the forward outlook entirely.
My thesis holds because the compute stays "fungible and durable" and goes to investment-grade customers or those backed by one. This week, the CEO said a key cloud partner doesn't need a backstop.
Vera Rubin should be "the fastest product ramp in NVIDIA's history", with supply tight "at least through the end of fiscal year 28." Customers waiting in line for each generation keep demand ahead of supply.
If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And NVDA wasn't one of them.
They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->>
Contact editorial@247wallst.com for any questions or corrections.
