The company generated a record $30 billion in total revenue during the fiscal 2025 second quarter (ended July 28), which was a 122% increase from the year-ago period. That crushed Wall Street’s forecast of $28.7 billion. The result included $26.3 billion in data center revenue alone, which represented 154% growth thanks primarily to GPU sales.

The chipmaker also generated a strong result on the bottom line with $0.68 in earnings per share (EPS). It was a 152% increase, and comfortably above Wall Street’s estimate of $0.64 per share.

Wall Street also underestimated Nvidia’s guidance for the third quarter. The company told investors it expects to deliver $32.5 billion in total revenue, whereas the Street had the number pegged at $31.7 billion.

Analysts have since revised their estimates higher to $32.9 billion (according to the consensus provided by Yahoo), which now signals that management’s own forecast might be too conservative. We’ll know for sure on Nov. 20.

The performance of a stock on any given day is just noise, but it’s worth noting Nvidia stock actually fell by around 6% the day after it reported its second-quarter results in August. However, it has since gained 24% (as of this writing) and now trades at a record high.

The stock has soared almost tenfold since the start of last year alone, so the long-term trend is crystal clear. If the company exceeds Wall Street’s revenue estimate of $32.9 billion in its upcoming third-quarter report, I would expect the stock to continue moving higher in the weeks and months ahead.

Its valuation also supports upside in the medium term. Wall Street expects the company to generate $4.06 in EPS in fiscal 2026 (which begins in February 2025), which places the stock at a forward price-to-earnings ratio (P/E) of 35.8. That means the stock will have to rise by 90% over the next year or so just to maintain its current P/E of 68.1.

A P/E of 68.1 isn’t cheap relative to the market (the Nasdaq-100 trades at a P/E of 31.8), but Nvidia traded at an average P/E of 58.4 over the last 10 years — and most of that period didn’t even include the incredible tailwind from AI. Therefore, strong upside is definitely on the table in the coming year as long as the company meets Wall Street’s earnings estimate:

Microsoft just told investors it had $20 billion in capital expenditures (capex) during its fiscal 2025 first quarter (ended Sept. 30), most of which went toward data center infrastructure and AI chips. That followed $55.7 billion in capex spending in fiscal 2024. Since Microsoft is rumored to be the biggest buyer of Blackwell chips right now, that bodes very well for Nvidia’s financial results.

But Microsoft isn’t alone. Amazon is on track to spend over $75 billion on AI capex this calendar year, and Meta Platforms will spend up to $40 billion, with even more money earmarked for 2025. The demand trajectory for Nvidia’s GPUs is crystal clear, and that should support strong revenue and earnings growth for the foreseeable future.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Prediction: Nvidia Stock Is Going to Soar After Nov. 20 was originally published by The Motley Fool