What we learned from Nvidia's big day
Axios · LC · trust 31/100
Add Axios on Google Data: Source: S&P Capital IQ Pro, company releases; Note: Nvidia's fiscal year runs ahead of the calendar. The quarter ended July 2026 is its Q2 fiscal 2027.; Chart: Emily Peck/Axios AI behemoth Nvidia reported blowout earnings Wednesday — exceeding Wall Street's expectations — and even jaded investors who had grown a bit immune to the company's stratospheric growth over the past year seemed to like it.
Why it matters: The chipmaker's earnings are viewed as a barometer of the overall health of the AI trade.
By the numbers: The numbers are bonkers. Nvidia's revenue was $96.2 billion in the second quarter — up more than double the same period a year ago.
The latest: After chief financial officer Colette Kress told investors that the company expects revenue will jump another 70% next fiscal year — the expectation was 45% — the stock shot up in after-hours trading and is up more than 7% on Thursday morning.
Supply chain problems. Nvidia is just like everyone else, squeezed by the surging demand for memory chips.
Buyback flex. If you want to understand how the mammoth chipmaker stands apart from the other companies in this space — the hyperscalers, frontier models and so forth — look no further than stock buybacks.
The breadth of the boom. It's more than just the tech giants. "Most people see just hyperscalers," Nvidia chief executive Jensen Huang told investors. "That's half the picture."
Yes, but: There's little doubt that Nvidia has a huge business on its hands. But there are worries that it sits at the heart of an ecosystem that has yet to prove its value.
The bottom line: Nvidia is making real money, and investors seem to grudgingly have to hand it to them.
What to watch: The stock today. Nvidia's stock price has fallen the day after five of its last six earnings reports, as Bloomberg points out .
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