6 days ago
Nvidia Shares Jump After Earnings and Strong AI Growth Forecast
Nvidia makes computer chips used for artificial intelligence.
The company earned more money than experts expected in its latest quarter.
It also predicted that sales would keep growing strongly.
Investors liked the news, so Nvidia’s shares rose after regular trading ended.
Much of the company’s sales came from its data center business.
Nvidia’s CEO said a major deal with Amazon shows that demand for AI chips remains high.
However, Nvidia also has billions of dollars in debt that it will need to repay.
The company warned that paying this debt could affect its future finances and cash flow.
Nvidia reported fiscal second-quarter revenue of $96.22 billion, above analysts’ $92.17 billion estimate.
Earnings per share reached $2.22, beating the expected $2.10.
The company forecast fiscal third-quarter revenue of $108 billion, exceeding the $105.2 billion consensus estimate.
Nvidia expects 70% revenue growth in fiscal 2028, while customer forecasts indicate growth could double, according to CFO Colette Kress.
Shares rose 4.3% to $209.66 in extended trading, despite Nvidia disclosing increased upcoming debt obligations.
- Who
- Nvidia, led by CEO Jensen Huang and CFO Colette Kress.
- What
- Nvidia reported quarterly results and revenue guidance that exceeded analyst expectations, while disclosing increased debt obligations.
- Where
- The results were discussed in Nvidia’s filing and an earnings call; Huang also spoke with CNBC.
- When
- The results were released Wednesday, August 26; debt figures were reported as of July 26, 2026.
- Why
- Strong demand for artificial-intelligence chips, including from Amazon Web Services, supported the outlook, although supply constraints and debt remain risks.
Key facts
- Fiscal Q2 revenue
- $96.22 billion, up more than 100% year over year and above the $92.17 billion estimate.
- Fiscal Q2 EPS
- $2.22, compared with the $2.10 analyst expectation.
- Fiscal Q3 revenue outlook
- $108 billion, with a 2% deviation on either side; analysts expected $105.2 billion.
- Fiscal 2028 growth outlook
- Nvidia expects revenue growth of 70%; customer forecasts cited by management point to growth doubling next year.
- Data center revenue
- $89 billion, up 117% year over year and above the $86.33 billion estimate.
- Debt
- Nvidia reported $33.5 billion in senior notes, a $25 billion commercial paper program, and $15 billion due within one to five years.
- Share reaction
- Shares ended extended trading 4.3% higher at $209.66; Nasdaq futures rose more than 300 points.
Quotes
Nvidia
The company, in a statement included in its results filing
“Maintenance of our indebtedness, contractual restrictions, and additional issuances of indebtedness could cause us to dedicate a substantial portion of our cash flows from operations towards debt service obligations and principal repayments.”
CNBC TV 18
Sources
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