Key points:

• Nvidia shares soar 5%
• Markets cheer earnings
• Guidance points to more growth

Beast chipmaker beat estimates, accelerated its next product cycle and issued rare long-term guidance.

🚀 Nvidia clears the high bar

• Nvidia shares NVDA jumped more than 5% after hours, recouping a brief dip following its quarterly results.
• Revenue more than doubled to a record $96.2 billion, comfortably beating Wall Street’s $91.9 billion estimate. Adjusted earnings reached $2.22 per share versus the $2.08 analysts expected.
• Data-center revenue surged 117% to $89 billion, clearing estimates of roughly $85.08 billion. The tech giant expects third-quarter revenue of… wait for it… $108 billion, plus or minus 2%, compared with consensus near $104.19 billion. Big if true.
• The shares only accelerated during Nvidia’s earnings call, when CEO Jensen Huang declared that AI had reached an “inflection point.”
• His argument: AI-generated computing is now producing measurable revenue for customers, turning expensive infrastructure from a fascinating experiment into something businesses can monetize.

🧠 Rubin arrives ahead of schedule

• Nvidia expects revenue to grow roughly 70% in fiscal 2028, far above analysts’ prior forecast near 44%. The disclosure was unusual because Nvidia rarely guides an entire year ahead.
• The next-generation Vera Rubin platform has started shipping and should generate around one-fifth of data-center revenue this quarter.
• Nvidia and Amazon Web Services also plan to deploy another two million GPUs during 2027 and 2028, providing unusually visible demand beyond the current product cycle.
• AI laboratories such as OpenAI are expected to produce roughly one-quarter of Nvidia’s total business next year.
• nMeanwhile, CoreWeave, Nebius and other “neo-clouds” — specialist providers built around AI computing — could finish this year with more than eight gigawatts of Nvidia capacity, up from three gigawatts last year.

⚠️ Huge growth carries huge bills

• Nvidia remains supply-constrained, particularly in memory. Rising component costs are expected to push gross margin down from around 74% this quarter toward 71%–72% in the fourth quarter.
• Gross margin measures the revenue remaining after production costs, so rapid sales growth won’t translate perfectly into profit.
• China remains another missing piece. Nvidia excluded Chinese data-center sales from its outlook as H200 shipments remain limited and unpredictable.
• That creates potential upside if restrictions ease, but also leaves one of the world’s largest AI markets largely absent from an otherwise spectacular forecast.

Source: Tradingview