Nvidia’s shares approached a record level on Wednesday after the chipmaker reported fiscal second-quarter revenue of $96.2 billion, surpassing the $91.9 billion consensus estimate by $4.3 billion and marking its 15th straight quarter of earnings beats.
Data center revenue surged 117% year-over-year to $89 billion, driven by strong demand for the Blackwell Ultra infrastructure platform. Earnings per share reached $2.22, exceeding the $2.08 estimate by 6.7%. The company returned a record $26 billion to shareholders in the quarter, including $20 billion in buybacks and $6 billion in dividends.
Forward guidance for the current quarter projected revenue of $108 billion, 4% above the consensus estimate of $104 billion. Nvidia also raised its long-term growth outlook, forecasting roughly 70% revenue growth in fiscal 2028, nearly double the Street’s previous model and 25 percentage points above current expectations. The company expects top hyperscalers’ capital expenditures to reach $1.3 trillion in 2027, underscoring sustained demand for AI infrastructure.
Gross margin guidance indicated sequential compression, with a projected decline of about 100 basis points to 74% in the current quarter. Further margin pressure is anticipated in January, with a range of 71% to 72% expected due to rising memory costs.
Nvidia’s stock traded at $224.55, up 7.1% for the session and 14.3% over the past month. The shares remain 5.1% below the all-time high of $236.54. The company’s market capitalization stands at $5.44 trillion, the largest globally. Technical indicators showed a strong buy signal across daily and weekly timeframes, with the relative strength index at 59.3 and 59.5, respectively.
Analysts maintained a bullish stance, with 58 buy ratings, two holds, and one sell. Price targets ranged from $300 at DA Davidson to $515 at Raymond James, while fair value estimates placed the stock at $260.09, implying 15.8% upside from current levels.
