Nvidia doubles quarterly revenue to $96.2B and issues $108B guidance

Second-quarter financial results

Santa Clara-based chipmaker Nvidia reported revenue of $96.2 billion for its second fiscal quarter ended 26 July, more than doubling its sales compared to the same period in 2025. The total exceeded consensus estimates compiled by analysts, who had projected approximately $92 billion, or roughly $4 billion less than the final figure. Revenue increased by approximately $15 billion from the preceding quarter. Net profit rose 126% year-on-year to $59.7 billion, accompanied by adjusted earnings per share of $2.22. The company closed the quarter holding $80 billion in liquid cash reserves. Following the financial report, management approved additional share buybacks alongside an increase in dividend distributions to shareholders.

Revenue targets and Amazon cloud agreement

For the third quarter, the executive board led by Chief Executive Officer Jensen Huang projected revenue of $108.0 billion, plus or minus 2%. That forecast exceeded average expectations of $104.19 billion tracked in LSEG consensus data. Even the lower end of the two percent range remains slightly above average analyst estimates. Nvidia guided for an adjusted gross margin of 74%, plus or minus 0.50 percentage points, compared to the 75% margin recorded in the second quarter. In a conference call with financial analysts, Chief Financial Officer Colette Kress projected full-year revenue growth of approximately 70% for fiscal year 2028. Kress also announced an expanded multi-year partnership with Amazon Web Services, under which the cloud division will install two million additional Nvidia graphics processing units across its data center network throughout 2027 and 2028.

Valuation metrics and stock reaction

Nvidia shares traded with initial volatility following the earnings release, slipping by between 0.9% and 1.2% in extended trading before advancing by more than 4%. The stock is up between 12% and 14.2% since January 2026, reaching a price of $210 per share. Over that same timeframe, equity prices for semiconductor competitors Intel and AMD have more than doubled. An investor who placed 1,000 euros into Nvidia stock at the end of 2019 holds nearly 36,000 euros as of August 2026. The company reached a market capitalization of $5.07 trillion, maintaining its rank as the world's most valuable listed company ahead of Apple at $4.2 trillion, Alphabet at $3.65 trillion, and Microsoft at $3.6 trillion. At approximately $5.1 trillion, the firm's valuation roughly equals the annual economic output of Germany.

Trade controls and infrastructure competition

The third-quarter sales projection incorporates an assumption of zero data center chip shipments to China due to United States export controls. Large technology corporations, including Microsoft and Meta, are projected to spend more than $730 billion on artificial intelligence hardware in 2026. However, both firms are directing an increasing share of their capital budgets toward developing custom proprietary silicon to limit exposure to expensive third-party processors. At the same time, traditional semiconductor makers Intel and AMD continue to expand their product offerings across server markets. Nvidia, which originated in the 1990s designing graphics chips for video games, now supplies processors for training and operating large artificial intelligence language models.