Nvidia’s stock advanced 4.2% in after-hours trading Wednesday following the release of fiscal second-quarter results that exceeded Wall Street expectations, underscoring continued investor appetite for artificial intelligence-related infrastructure plays.
The Santa Clara-based chipmaker reported data center revenue of $89 billion for the quarter, a 117% increase from the same period a year earlier. Management projected third-quarter revenue of $108 billion, give or take, while also raising its fiscal 2028 revenue outlook by 70%. The company’s shares have climbed roughly 1,700% since the start of the AI-driven bull market, cementing its position as the world’s most valuable publicly traded company.
Heavy trading accompanied the move, with more than 50 million shares changing hands, according to LSEG data. Year-to-date, Nvidia’s stock has gained about 12%, trailing the Philadelphia Semiconductor Index’s gain of over 60% during the same period.
The company’s gross exposure under land, power, and shell guarantee agreements totals $3.5 billion, a figure executives described as a fraction of quarterly revenue. Nvidia has beaten analyst estimates for eight consecutive quarters, a streak that has further reinforced investor confidence in its execution amid surging demand for AI accelerators.
Major customers including Microsoft and Meta Platforms are expected to spend more than $730 billion on AI infrastructure this year, up from roughly $400 billion in 2025, according to industry estimates. Options markets had priced in a potential 5.4% move in either direction ahead of Thursday’s open, compared with a 6.5% implied move before the May earnings report.
Analysts noted that while the results were strong, the bar for outperformance remains exceptionally high given elevated expectations. Seth Hickle, chief investment officer at Mindset Wealth Management, called the report "amazing" but added that beating estimates is now "the price of admission" for the stock. Chuck Carlson, CEO of Horizon Investment Services, described the results as positive for the AI sector but cautioned that broader market rotation could limit immediate follow-through in related equities.
