NVIDIA’s Data Center business is thriving, with revenues up 73.3% year over year to $39.1 billion in Q1 fiscal 2026. Strong demand for AI infrastructure, including the new Blackwell platform, is driving growth, with major orders from Microsoft, Google, and Amazon.

The outlook for NVIDIA’s Data Center business remains positive, with global AI factory buildouts and orders from governments and enterprises boosting demand for AI chips. NVIDIA’s networking business, NVLink and Spectrum-X, is also contributing to growth by enhancing data movement within AI clusters.

Recent U.S. government approval for exporting H20 AI chips to China and potential development of less powerful Blackwell architecture AI chips for the Chinese market are expected to further fuel NVIDIA’s Data Center revenues. The company’s integrated hardware, networking, and software approach positions it strongly in the AI infrastructure market.

While NVIDIA leads in AI data centers, rivals like AMD and Intel are ramping up efforts to capture market share. AMD’s MI300X GPUs are gaining traction, while Intel is promoting its Gaudi 3 AI chips as a cost-effective option for training and inference tasks.

NVIDIA’s stock has risen 30.3% year to date, outperforming the Computer and Technology sector. The company’s forward P/E ratio of 34.78 is higher than the sector average of 27.24, reflecting strong growth prospects. Analysts expect NVIDIA’s fiscal 2026 and 2027 earnings to increase by approximately 42.8% and 32.6%, respectively.

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Read more at Nasdaq: NVIDIA’s Data Center Grows Fast: Can It Sustain the Momentum?