Does Nvidia Stock Still Have Enough Mojo to Buy?

Despite posting blockbuster Q3 results yesterday evening, the post-earnings rally in Nvidia NVDA stock faded in Thursday’s trading session from a +5% spike to a 3% dip and below its 50-day moving average of $184 a share.

The short-term stall in momentum has correlated with AI bubble concerns and export restrictions on chips to China. That said, headlines are highlighting Nvidia CEO Jensen Huang’s comments that sales for its state-of-the-art Blackwell GPUs have been off the charts, with GPUs that are delivered through cloud platforms being sold out.

On top of this, NVDA still has rewarding year-to-date gains of more than +30% which have added to its infamous returns over the last decade.

Nvidia’s Sequential Growth

Nvidia’s headline numbers spoke for themself, 62% year-over-year growth in Q3 sales to a quarterly record $57 billion, and 60% EPS growth as well to $1.30. These figures topped consensus estimates by more than 4% respectively.

However, what really points to Nvidia still having its mojo and backs Jensen Huang’s comments in regard to surging demand for Blackwell GPUs, is that the tech giant’s top line stretched 22% from sales of $$46.74 billion last quarter.

This sequential gain is far higher than typical periods and marked one of the largest jumps in the chipmaker's stellar history. Most importantly, such remarkable growth quiets fears of increased competition from AMD AMD and other chipmakers.

Nvidia’s Guidance & Growth Drivers

Nvidia’s revenue guidance should also serve as a mojo driver, expecting Q4 sales at what would be a new quarterly peak of $65 billion plus or minus 2%, and above Wall Street’s expectations of $60.57 billion (Current Qtr below).

Furthermore, Nvidia’s lifted outlook shows the AI demand explosion is very much alive, with AI training and inference workloads growing exponentially and fueling its dominance in hyperscale and enterprise AI.

Strategic partnerships have also kept Nvidia at the center of the AI ecosystem, including new collaborations with OpenAI, Uber UBER, and Elon Musk's xAI. Notably, the collaboration with Uber focuses on accelerating autonomous mobility by combining Uber’s massive ride data with Nvidia’s advanced AI platforms.

Vera Rubin Updates: Nvidia previously announced that its Vera Rubin platform will serve as the next-generation successor to its Blackwell architecture, and has moved the official launch up to Q3 of 2026.  

Named after the pioneering astronomer who discovered evidence of dark matter, Vera Rubin symbolizes Nvidia’s ambition to "illuminate" new frontiers as the platform is engineered for the next wave of AI workloads that demand unprecedented context length and compute power, setting the stage for trillion-parameter reasoning models and generative AI at an industrial scale.

Average Zacks Price Target & Analyst Upgrades

Following a strong Q3 report, most analysts have been actively upgrading price targets for NVDA, with Loop Capital citing extreme confidence in Nvidia’s AI roadmap for its street-high tag of $350. The current Average Zacks Price Target of $239.49 suggests 28% upside for NVDA.

Bottom Line

At 41X forward earnings, Nvidia’s valuation doesn’t necessarily support the mojo factor but regarding AI bubble fears, it’s noteworthy that this is a distance from its decade-long high of 118X and a slight discount to the median of 45X during this period.  

Plus, in the last seven days, EPS revisions have trended higher for Nvidia’s current fiscal 2026 and FY27. Seeing as this positive trend is likely to continue after its Q3 EPS beat and favorable guidance, NVDA could get its mojo back in the near future and currently sports a Zacks Rank #2 (Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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