Nvidia Crushes Q2 Earnings with Record Revenue Growth
Nvidia's stock price may seem high given its $96 billion quarterly revenue and $5.4 trillion market cap, but experts believe it remains a good buy. The company's AI chip sales have skyrocketed since 2022, increasing more than 11-fold to $303 billion on a trailing-12-month basis. In the latest quarter, which ended July 26, Nvidia posted $96 billion in revenue, a 106% year-over-year increase.
The growth is not limited to its hyperscaler customers like Amazon, Alphabet, and Microsoft. Nvidia's non-hyperscaler business has seen a 138% year-over-year surge to $40 billion, outpacing the growth of its core customers. This diversification into new customer segments is a significant opportunity for Nvidia to extend its leadership.
Analysts currently project $411 billion in revenue for fiscal 2027, followed by a 65% jump to $678 billion in fiscal 2028. However, Nvidia's guidance implies about $700 billion in revenue next year, suggesting that the company may beat Wall Street estimates and making its stock even cheaper than it appears.