NVIDIA (NASDAQ:NVDA) Announces Quarterly Earnings Results

NVIDIA (NASDAQ:NVDA) announced its quarterly earnings data on Wednesday. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13, Zacks reports. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business’s quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.05 earnings per share.

Here are the key takeaways from NVIDIA’s conference call:

• Record results and strong outlook: Q2 revenue reached $96 billion, more than doubling year over year, while NVIDIA forecast approximately 70% revenue growth in fiscal 2028 and $108 billion in Q3 revenue. Management said demand is substantially higher than its supply-constrained outlook.
• AI infrastructure demand continues to broaden: Data center revenue grew 18% sequentially to $89 billion, with particularly strong growth from enterprise, sovereign, NeoCloud, and other ACIE customers. NVIDIA expects non-hyperscaler markets to represent roughly half of its data center business over time.
• Major product and customer expansions support growth: AWS plans to deploy an additional 2 million NVIDIA GPUs through fiscal 2029, while Vera Rubin production shipments have begun and are expected to ramp faster than any prior NVIDIA product. The company also expects CPU revenue to more than double in fiscal 2028.
• New financing and revenue models could expand the addressable market: NVIDIA is partnering with major infrastructure capital providers to raise more than $500 billion for AI infrastructure and may receive recurring revenue-sharing income from NeoCloud deployments in addition to hardware sales.
• Gross margins are expected to decline materially: Memory costs are rising sharply, leading NVIDIA to forecast Q3 gross margins of 74%, a Q4 trough of 71%–72%, and fiscal 2028 margins of 72%–73%. The company also said there is no China data center compute revenue in its forward outlook amid geopolitical uncertainty, while investments and credit support for AI labs introduce additional financial exposure.

NVIDIA Trading Down 1.6%

Shares of NVDA stock opened at $209.66 on Thursday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The company has a market capitalization of $5.07 trillion, a price-to-earnings ratio of 32.11, a PEG ratio of 0.42 and a beta of 2.23. NVIDIA has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a 50-day simple moving average of $207.61 and a two-hundred day simple moving average of $200.35.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be issued a dividend of $0.25 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s payout ratio is 15.31%.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record results and stronger outlook: Fiscal Q2 revenue reached $96.2 billion, up 106% year over year and above the roughly $92.2 billion consensus. Adjusted EPS was $2.22 versus $2.09 expected, while Data Center revenue rose 117% to $89.0 billion. NVIDIA forecast fiscal Q3 revenue of approximately $108 billion, excluding China compute revenue. NVIDIA second-quarter financial results
• Positive Sentiment: AI demand remains broad and accelerating: CEO Jensen Huang said the AI infrastructure buildout is operating at full speed, with the Vera Rubin platform ramping into production. NVIDIA also expanded its AWS partnership, including an additional 2 million GPUs, supporting confidence in hyperscaler demand. AWS and NVIDIA GPU partnership
• Positive Sentiment: Analyst support increased: Goldman Sachs and Citigroup raised their price targets, while Raymond James lifted its target to $352 and maintained a strong-buy rating. The upgrades indicate that analysts view the earnings beat and long-term growth forecast as more important than near-term valuation concerns. Wall Street commentary on NVIDIA
• Neutral Sentiment: Potential Hugging Face acquisition: Reports say NVIDIA has agreed, or is close, to acquiring open-source AI platform Hugging Face for about $12.9 billion. The deal could strengthen NVIDIA’s software and developer ecosystem, but reports conflict on whether a binding agreement has been signed.
• Negative Sentiment: Margins and competitive risks remain: NVIDIA expects fiscal Q3 gross margin of about 74%, down from 75% in Q2, while operating expenses continue to rise. Investors are also monitoring custom chips from OpenAI and Microsoft that could reduce NVIDIA’s share of inference workloads over time. Custom AI chip competition
• Negative Sentiment: Execution and financing concerns: Supply constraints, the absence of China compute revenue in guidance, and scrutiny of NVIDIA’s investments and customer-financing relationships could add volatility despite the strong fundamentals.

Analysts Set New Price Targets

A number of brokerages recently commented on NVDA. TD Cowen reaffirmed a “buy” rating on shares of NVIDIA in a research report on Tuesday, August 18th. New Street Research lowered their target price on NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. William Blair reissued an “outperform” rating on shares of NVIDIA in a research report on Tuesday, June 2nd. China Renaissance began coverage on shares of NVIDIA in a research note on Friday, June 5th. They set a “buy” rating and a $319.00 price target for the company. Finally, Raymond James Financial assumed coverage on shares of NVIDIA in a report on Wednesday. They set an “outperform” rating on the stock. One analyst has rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $311.59.

Insider Activity at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,900,500 shares of company stock valued at $410,449,265. 3.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Institutional investors have recently added to or reduced their stakes in the stock. State Street Corp raised its holdings in shares of NVIDIA by 1.2% in the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock worth $184,911,111,000 after purchasing an additional 11,451,386 shares during the period. Geode Capital Management LLC raised its stake in NVIDIA by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after acquiring an additional 3,383,441 shares during the period. Norges Bank purchased a new stake in NVIDIA during the fourth quarter valued at about $62,244,133,000. Bank of America Corp DE boosted its position in NVIDIA by 1.5% during the fourth quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker’s stock worth $34,909,347,000 after purchasing an additional 2,849,678 shares during the period. Finally, Legal & General Group Plc increased its stake in shares of NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after purchasing an additional 2,609,560 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.

NVIDIA declared that its board has authorized a stock repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

About NVIDIA

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.