Nvidia stock (NVDA) surged more than 7% in early trading Thursday after the artificial-intelligence chip giant reported a blowout second quarter that topped Wall Street estimates and, at long last, snapped its frustrating post-earnings losing streak. Shares climbed from a prior close of $209.66 to around $225.86, lifting the company's market capitalization to roughly $5.45 trillion and reasserting Nvidia's position as the undisputed bellwether of the AI trade.
The catalyst was a headline number that caught even bullish analysts off guard: $96.2 billion in quarterly revenue. That figure, up from $46.7 billion a year earlier, gave investors the one thing they had been waiting several quarters to see — a print strong enough to keep the stock rising the morning after, rather than selling off on the news.
Inside Nvidia's $96 Billion Quarter: The Numbers Behind the Rally
Nvidia reported its fiscal 2027 second-quarter results on Wednesday, August 26, 2026, after the closing bell. Total revenue came in at $96.2 billion, more than doubling the $46.7 billion posted in the same period a year ago and building on the $81.6 billion the company delivered in the prior quarter. Gross profit reached $72.1 billion, reflecting a gross margin of roughly 75% that underscores the premium pricing power of Nvidia's data-center GPUs.
The quarter extends a remarkable multi-year expansion in the company's top line. For the full fiscal 2026 year that ended in January, Nvidia generated $215.9 billion in revenue and $120.1 billion in net income. Over the trailing twelve months through July 2026, revenue has now climbed to nearly $303 billion.
Just as important as the quarter itself, management guided to roughly 70% year-over-year revenue growth for fiscal 2028 — a signal that the AI infrastructure buildout, powered by hyperscalers racing to expand data-center capacity, remains firmly intact. Chief executive Jensen Huang and chief financial officer Colette Kress framed the results around accelerating demand for accelerated computing across the industry, with one firm noting that underlying demand supports roughly 100% sales growth.
Timeline: How Nvidia Finally Broke Its Post-Earnings Losing Streak
Thursday's surge marks a sharp departure from a pattern that had frustrated shareholders for several quarters. In previous reports, Nvidia consistently beat expectations — yet the stock often drifted lower the next day as investors fretted over valuation, supply constraints, or whether demand could possibly keep accelerating.
This time, the script flipped. Here is how the latest chapter unfolded:
- Wednesday, August 26 (after market close): Nvidia reports fiscal Q2 results, posting $96.2 billion in revenue and upbeat fiscal 2028 guidance.
- Wednesday evening: Analysts rush to raise price targets, with at least five major firms lifting their outlooks on the stock.
- Thursday, August 27: Nvidia shares open sharply higher, climbing roughly 7.7% to about $225.86, while the Nasdaq and QQQ ETF rise in sympathy as the AI trade regains its footing.
The rally arrived even as a potential policy headwind loomed, with reports indicating the U.S. is considering a fresh round of tariffs on semiconductors that could cover servers, laptops, and gaming hardware.
Why the Beat Matters: Wall Street Rewrites Its Nvidia Targets
The market's enthusiasm was quickly echoed on Wall Street, where analysts moved swiftly to raise their price targets and defend bullish cases. Among the notable revisions following the report:
- Raymond James raised its target to $515 from $352, maintaining a Strong Buy rating.
- Evercore ISI lifted its target to $465 from $413, with an Outperform rating.
- Rosenblatt raised its target to $390 from $325.
- Truist increased its target to $346 from $307.
- Needham raised its target to $300 from $270.
Across the broader analyst community, the consensus remains firmly bullish. According to 60 analysts polled by S&P Global, Nvidia carries a "Strong Buy" rating with an average one-year price target of $316.17 — roughly 40% above the stock's current level — and a range stretching from a low of $180 to a high of $515.
For long-term investors, the stakes extend far beyond a single quarter. Nvidia sits at the center of a multi-year infrastructure buildout in which cloud providers and enterprises are pouring capital into accelerated computing. The stock's 52-week trading range — from a low of $164.07 to a high of $236.54 — captures both the scale of the opportunity and the volatility that comes with being the market's most closely watched name. At its current price, Nvidia trades at roughly 28 times trailing earnings, a multiple that reflects both exceptional profitability and elevated expectations.
Where Things Stand Now: A Reported Hugging Face Deal Adds a New Chapter
Adding to the day's momentum, Nvidia has reportedly agreed to acquire Hugging Face, the AI model-hosting platform, for about $13 billion, according to a Forbes report published Thursday. Nvidia had previously invested $235 million in Hugging Face during its Series D funding round in August 2023, and the reported acquisition would deepen the chipmaker's push into open-source AI software and model distribution — a strategic complement to its dominant hardware franchise.
If completed, the deal would extend Nvidia's reach beyond silicon and into the software layer of the AI ecosystem, tightening its relationship with the developers and researchers building on its platforms and reinforcing the company's embrace of open-source models.
What Happens Next: The Road Ahead for Nvidia Stock
With the earnings overhang now cleared, attention turns to whether Nvidia can sustain its blistering growth into fiscal 2028. Management's guidance for roughly 70% revenue growth suggests the company expects the AI spending wave to continue, but investors will be watching closely for any signs of cooling data-center demand, the outcome of potential semiconductor tariffs, and how a Hugging Face integration might unfold. Analysts also flagged memory supply as a lingering headwind worth monitoring.
At a valuation of roughly $5.45 trillion, Nvidia trades at a premium that leaves little room for error. Yet for the analysts who lifted their targets this week, the $96 billion quarter was evidence that the AI buildout is still running hot — and that Nvidia remains the single best-positioned company to capture it.
Key Takeaways: What Investors Should Watch
- Nvidia reported $96.2 billion in fiscal Q2 revenue, more than double the prior-year period.
- The stock surged about 7.7% to $225.86, snapping its post-earnings losing streak.
- Wall Street raised price targets, with Raymond James going as high as $515.
- The consensus analyst rating is "Strong Buy," with an average target of $316.17.
- Nvidia reportedly agreed to buy Hugging Face for $13 billion, expanding into AI software.
- Management guided to roughly 70% revenue growth for fiscal 2028.
