What we learned from Nvidia's big day
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…
Nvidia, the AI behemoth, reported extraordinary earnings on Wednesday, surpassing Wall Street's expectations. The chipmaker's revenue soared to $96.2 billion in the second quarter, a more than doubling of the same period a year earlier. After CFO Colette Kress announced that revenue is expected to jump another 70% next fiscal year, Nvidia's stock surged in after-hours trading, rising over 7% on Thursday morning.
Amazon announced an additional purchase of 2 million chips. Nvidia's supply chain is struggling due to increased demand for memory chips, which is slightly squeezing margins, but CEO Jensen Huang sees this as a positive sign. Nvidia is also making significant investments in the AI ecosystem, including $19 billion in stock buybacks and $50 billion in frontier AI labs.
The company is expanding beyond tech giants like Alphabet to include sovereign AI initiatives and enterprise markets, with Huang emphasizing that everyone wants to be part of the AI revolution. However, there are concerns about Nvidia's potential involvement in circular financing, where customers fund purchases of Nvidia tech, which in turn funds more Nvidia tech.
Written by urgent.news from Axios's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
