Nvidia Q2 Earnings Impact: Chipmaker Nvidia shares jumped 4.71% in extended trading on Wednesday to $219.53 after the chipmaker reported a strong second-quarter performance and raised its revenue guidance for the current quarter.
The stock had settled 1.59% lower at $209.66 during regular trading hours. It opened at $212.64, touched an intraday high of $213.60 and fell to a low of $209.23.
The after-hours rally came after an initial dip, underscoring the elevated expectations surrounding Nvidia, Wall Street's favourite AI chipmaker. The company comfortably beat consensus estimates for the second quarter and raised its third-quarter revenue outlook.
Nvidia shares have gained nearly 7% over the past month, around 13% in the last six months and a little over 15% over the past year.
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Nvidia Q2 Earnings
Nvidia reported revenue of $96.2 billion for the second quarter ended July 26, 2026, up 18% from the previous quarter and 106% from a year ago.
GAAP and non-GAAP gross margins stood at 75%. GAAP earnings per diluted share came in at $2.46, while non-GAAP EPS was $2.22.
“AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” Nvidia founder and CEO Jensen Huang said.
Huang said AI infrastructure demand was accelerating, with multiple frontier labs and startups scaling simultaneously, alongside a growing open-model ecosystem and increasing adoption of physical AI.
Nvidia Q3 Guidance
For the third quarter of fiscal 2027, Nvidia expects revenue of $108 billion, plus or minus 2%.
The company said its outlook does not assume any Data Center compute revenue from China.
Nvidia expects GAAP and non-GAAP gross margins of 74%, plus or minus 50 basis points. GAAP operating expenses are expected to be around $9.2 billion, while non-GAAP operating expenses are projected at approximately $9 billion.
For the full fiscal 2027, Nvidia expects GAAP and non-GAAP tax rates between 16% and 18%, excluding discrete items and material changes to its tax environment.
Data Center Revenue
Nvidia's Data Center business continued to be the biggest growth engine, with second-quarter revenue rising 18% sequentially and 117% year over year to $89 billion.
The company said its Vera Rubin platform is ramping into full production, with systems running at partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius.
Nvidia also unveiled Vera, a CPU designed for AI agents, and said its Groq 3 LPX inference accelerator had entered full production.
The company launched the NVIDIA DSX platform for designing and operating AI factories and announced strategic partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR aimed at mobilising more than $500 billion of third-party capital for AI infrastructure over time, subject to definitive agreements.
Nvidia also announced partnerships across the US, South Korea, Japan and Europe as governments and companies accelerate investments in sovereign and large-scale AI infrastructure.
Edge Computing
Second-quarter Edge Computing revenue rose 13% sequentially and 27% year over year to $7.2 billion.
Nvidia partnered with Microsoft to bring its RTX Spark superchip to Windows PCs and announced NVIDIA DGX Station for Windows for developing and running AI agents.
The company also expanded its autonomous vehicle and robotics ecosystem through partnerships with Foxconn, VinFast, Uber and HUMAIN.
Nvidia introduced new platforms and models for physical AI, robotics and autonomous vehicles, including Cosmos 3, Alpamayo 2 Super and the Isaac GR00T reference humanoid robot.
Shareholder Returns
Nvidia returned approximately $26 billion to shareholders during the second quarter through share repurchases and cash dividends.
As of the end of the quarter, the company had approximately $99 billion remaining under its share repurchase authorization.
Nvidia will pay its next quarterly cash dividend of $0.25 per share on October 1, 2026, to shareholders of record as of September 10.
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