Nvidia’s Q2 earnings topped expectations on August 26, with revenue of $96.2 billion beating the $92.2 billion Wall Street estimate. The chipmaker guided the current quarter to $108 billion. Nvidia (NVDA) stock erased an early dip to climb more than 4% in after-hours trading.
The company more than doubled its sales from a year earlier. Shares first dipped toward $205 on the release, then reversed to $219.12, up 4.51%, as the earnings call began, per Yahoo Finance data.
Nvidia Q2 Earnings Show a 106% Revenue Jump
Wall Street had braced for a monumental trading day with consensus near $92 billion. Nvidia cleared that bar by roughly $4 billion, while adjusted earnings per share (EPS) of $2.22 topped the $2.10 estimate.
Data Center revenue reached $89.0 billion against an $85.8 billion forecast, climbing 117% from a year earlier. Sales to hyperscalers, the largest cloud providers, hit $48.71 billion versus a $43.55 billion estimate.
That breadth eases concerns raised in the AI bubble debate over spending concentration among a few buyers.
Adjusted gross margin held at 75%, matching guidance. Adjusted net income climbed 118% to $54 billion, while free cash flow came in at $21.3 billion.
Q3 Guidance Clears the Whisper Bar
For the October quarter, Nvidia guided revenue to $108 billion, plus or minus 2%. That tops the $104.2 billion consensus. It also matches whisper numbers of $107 to $110 billion, the unofficial targets circulating among trading desks.
The outlook again assumes no Data Center compute revenue from China. Meanwhile, purchase commitments jumped from $119 billion to $279 billion, mostly tied to memory procurement. Gross margin guidance eased to 74%.
Nvidia also confirmed Vera Rubin, the successor to its Blackwell AI systems, is ramping into full production. Racks are already running at partner sites.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” CEO Jensen Huang framed the demand backdrop in the company’s earnings statement.
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Is the NVDA Post-Earnings Curse Broken?
The first reaction looked like a repeat of recent history. Traders had warned of an earnings trap heading into the print. NVDA fell after each of its last four reports, even when results beat estimates.
The knee-jerk selling followed that script, with shares briefly touching $205.
Positioning had also turned cautious. The stock entered the report after a seven-session losing streak, while chipmakers showed matching triangle patterns that signaled indecision before the release.
However, buyers stepped in within minutes, lifting the stock more than 4% once the call started. The $108 billion guide appears to have cleared even the most bullish whisper numbers.
Capital returns cushioned the reaction. Nvidia returned about $26 billion to shareholders during the quarter and still holds roughly $99 billion in buyback authorization.
The stakes stretch beyond one stock, as Nvidia and Micron together drive a third of Wall Street’s earnings growth. The earnings call will now decide whether the after-hours dip deepens or reverses.
Commentary on memory costs and the Rubin ramp could decide whether the rally holds into Thursday’s open.
Bitrue