NVIDIA (NVDA) Earnings & Valuation Debate: Reddit Analysis of $57B Revenue Report

The Reddit thread focuses on NVIDIA’s Q3 FY26 earnings report, which disclosed $57B in revenue (up 62% YoY), $31.9B net income (up65% YoY), and $1.30 EPS (up67% YoY) [1]. The forward P/E ratio stands at 23.53x [2], aligning with Reddit users’ claims of ~24x, considered reasonable for expected growth. NVDA stock closed at $177 on Nov28, 2025, down1.12% post-earnings, reflecting short-term profit-taking after a30% YTD gain [0]. Fiscal year confusion was resolved: NVIDIA’s FY26 runs from Feb2025-Jan2026, so Q3 FY26 covers Aug-Oct 2025 [1].

1. Fiscal year misalignment drives valuation debates: Reddit users confused calendar and fiscal years, affecting forward PE calculations.
2. Sentiment shifts with price: The thread’s narrative changed from “justified PE” (when stock was up) to “bubble concerns” during a recent9% decline (Nov20-28) [0].
3. Forward P/E balance: The 23.5x ratio balances growth prospects (40% expected FY27 growth [2]) and market expectations.

• Risks
  : Valuation pressure if AI demand slows (forward P/E depends on sustained growth [2]); short-term narrative volatility (Reddit sentiment shifts with price [0]).
• Opportunities
  : Continued AI infrastructure growth (data center revenue up66% YoY [1]); high gross margins (73.4% GAAP [1]); strong YTD return (30% [0]).

Critical data points: Q3 FY26 revenue ($57B), net income ($31.9B), EPS ($1.30), forward P/E (23.53x), stock price range (Nov20-28: $169.55-$196.00 [0]). Affected instruments: NVDA, SOXX, BOTZ, competitors AMD, INTC, GOOGL. Fiscal year clarification (FY26=Feb2025-Jan2026) resolves valuation confusion.