Nvidia Shatters Expectations with Record-Breaking Q2 Revenue
Nvidia's AI growth continues to outpace expectations as investors assess whether the massive AI investment cycle can continue beyond infrastructure and into enterprise applications. The chipmaker reported fiscal second-quarter (Q2) revenue of $96.2 billion, a 106% increase from a year earlier and exceeding Wall Street's expectation.
The company also guided revenue of about $108 billion for Q3, with data center sales jumping 117% to $89 billion. This reflects continued spending by cloud giants including Microsoft, Alphabet, Meta Platforms, and Amazon. CEO Jensen Huang described the current environment as a 'golden age' for computing, while the company pointed to growing demand for AI inference rather than model training alone.
Nvidia's sales could grow 100% next year, but supply limits may cap growth at 70%, still well above the 47% Wall Street expects. Truist raised its Nvidia price target to $346 from $307 and kept a Buy rating, saying this could boost Nvidia and revive AI stocks.
Nvidia stock gained over 4% during the week, with retail sentiment around the stock in 'extremely bullish' territory.