Since the passage of the U.S. Tax Cuts and Jobs Act in 2017, Nvidia has deployed its tax-savings windfall into an aggressive share-repurchase campaign. According to S&P Dow Jones Indices data, the company bought back $115.1 billion of its common stock over the past decade, and its trailing-12-month total has reached approximately $52 billion. This sustained buyback activity has reduced the company’s outstanding share count, driving earnings per share higher and underpinning its valuation relative to peers in the semiconductor sector.

Nvidia continues to command nearly 90% share of the data-center accelerator market, as enterprises and hyperscalers race to deploy artificial intelligence workloads. In the third quarter of fiscal 2026, the company reported revenue of $57 billion, up 62% year-over-year, and non-GAAP net income of $1.30 per share, a 60% increase. Management forecasts annualized adjusted earnings growth of 48% through fiscal 2028, supported by the upcoming Vera Rubin superchip platform—set to combine next-generation CPUs and GPUs—and the partial easing of export restrictions into China. Despite having risen over 1,150% since January 2023, Nvidia’s multiple remains near 45 times forward earnings, reflecting confidence in its long-term growth trajectory.

Complementing its GPU franchise, Nvidia’s high-speed networking segment generated $8.2 billion in Q3 fiscal 2026 revenue, a 162% increase year-over-year. Products such as InfiniBand switches, NVLink interconnects and Spectrum-X Ethernet platforms are now purchased by nearly nine out of ten AI-system customers, according to company disclosures. With the AI networking market projected to grow from $14.9 billion in 2025 to $46.8 billion by 2029, this division is poised to contribute meaningfully to Nvidia’s overall top-line expansion and margin profile.