Nvidia Retail Buying Frenzy Continues Unabated After Record Earnings

Nvidia's explosive earnings have investors going wild, with retail traders snapping up shares for the 15th consecutive trading session. The company's record quarter, which beat estimates on nearly every line, has sent its stock soaring. In the past 12 months, retail investors have bought over $30 billion in Nvidia stock, making it the most among any of the 'Magnificent 7' names.

The buying frenzy was triggered by Nvidia's Q2 FY2027 earnings report, which saw non-GAAP EPS come in at $2.22 against a consensus of $2.0887 and revenue grow 105.85% year over year to $96.22 billion. Data Center revenue reached $89.023 billion, up 117%, with Networking alone climbing 138%. Nvidia's CEO Jensen Huang framed the moment bluntly on the call: 'AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.'

Shares closed at $220.78 on August 31, up 5.9% in a week and 9.98% in a month. Earnings day itself delivered an 8.74% pop, the strongest post-earnings reaction on file. Over five years, NVDA is up 887.01%. Options positioning is measured rather than manic, with a full-chain put/call ratio of 0.61.

Nvidia expects to grow revenue by approximately 70% in fiscal 2028, calling it 'a supply-constrained outlook.' Q3 guidance of $108.0 billion, plus or minus 2%, excludes any China Data Center compute revenue. Bulls have plenty to point to: hyperscaler capex tracking toward $1.3 trillion in 2027 and a cloud backlog above $2 trillion.

Risks remain real, however. Supply commitments have swelled to $279 billion, DSO stretched to 60 days from 45, and gross margin is expected to bottom in Q4 at 71% to 72% on memory pricing. At a P/E of 44, the stock is priced for continued execution.