Nvidia Stock Soars After Earnings

Nvidia shares are soaring after the company reported another record-breaking quarter that beat Wall Street's expectations for the 15th straight quarter. Nvidia reported second-quarter revenue of $96.2 billion, more than double the $46.7 billion it posted in the same period a year ago, and adjusted earnings per share of $2.22 versus the $2.10 analysts were expecting. Data center revenue, which powers the company's AI accelerator business, came in at $89 billion, up 117% year over year. Nvidia also guided third-quarter revenue to approximately $108 billion, ahead of consensus, and forecast full-year fiscal 2028 revenue growth of approximately 70%. On the earnings call, Nvidia CEO Jensen Huang said, "Demand is super strong, and incredibly, it's accelerating." The one wrinkle in an otherwise stellar report was gross margins. Nvidia said margins will decline from 75% in the second quarter to around 71% to 72% in the fourth quarter as memory prices surge. CFO Colette Kress described the environment as "extreme pricing conditions in memory," adding that the magnitude of the price increases has exceeded prior expectations. Every Nvidia AI accelerator ships with high-bandwidth memory sourced from Micron, SK Hynix, and Samsung, and demand for that memory is being driven in large part by the AI buildout itself. Nvidia expects margins to recover in fiscal 2028 as it passes higher prices along to customers. $NVDA. Image Via Shutterstock: [Kathy Hutchins](https://www.shutterstock.com/g/HelgaEsteb) #NVIDIA #NVDA #AI 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 🖥️ Want the same tools the pros use—without the $10K Bloomberg terminal? Benzinga Edge gives you real-time portfolio alerts, weekly stock picks, and pro-grade research in one command center. 👉 https://bit.ly/4unSKiB ------------------------------------------------------------------------------------ 📲 Follow us on socials @benzinga 🔔 Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.