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Nvidia reported better-than-expected second-quarter results and issued revenue guidance that topped street estimates.
By the numbers:
Revenue: $96.2 billion vs $92.17 billion, up 106% from a year ago
Earnings per share: $2.22 adjusted vs $2.10 expected
Data center revenue: $89.0 billion, up 18% QoQ and 117% YoY
Earnings per share (EPS) shows how much profit a company earns for each share. Higher or growing EPS can signal stronger profitability and help investors compare companies and value stocks.
What worked: Nvidia sits at the centre of the AI world and has grown phenomenally on the back of the AI boom. The company’s chips are widely used to build and run some of the most advanced AI models.
The chipmaker forecast a 70% jump in revenue next fiscal year, pointing to continued demand for AI computing, even as shortages of memory components threaten to constrain how quickly it can expand.
Based on the consensus projection of $396 billion in revenue for fiscal 2027, which ends in January, Nvidia’s sales next year would reach $673 billion. That would put the chipmaker ahead of Apple and Alphabet, according to Wall Street projections, and behind only Amazon among US tech companies.
While the company is on a strong run, competition is growing, with Advanced Micro Devices, Google and others stepping up. Nvidia also faces soaring memory costs as a global shortage shows no signs of easing.
Stock action: but strong earnings haven’t necessarily meant a happy stock. Nvidia shares have fallen in the session following earnings for four straight quarters.
The company’s shares have been on a wild ride this year, sinking through the winter, soaring through the spring and bouncing around all summer.
Nvidia is up 12.42% in 2026, a decent showing but still a far cry from its past performance. At this time last year, the stock had gained 34%, while in 2024 it was up more than 150%.
The reason is hardly a secret. Investors are increasingly cautious about the durability of the AI trade, with inflation remaining high, interest rates rising and geopolitical risks mounting, from the US conflict with Iran to its trade tensions with Canada.
The India impact: a stronger Nvidia outlook could pull investor money back towards AI infrastructure stocks.
Meanwhile, analysts see limited upside for Indian IT stocks as high US interest rates, heavy tech spending, rising debt and intense competition continue to weigh on valuations.
