Nvidia Stock Surges to New Highs as Data Center Business Booms
Nvidia's stock is testing new all-time highs after the company posted revenue growth that left Wall Street scrambling to revise its models upward. The AI chipmaker's Data Center franchise now dwarfs the rest of the business, with revenue more than doubling year over year in the July quarter.
The stock has climbed on five consecutive earnings beats and expanding gross margins, with a customer list that includes every major hyperscaler plus sovereign programs. However, there are concerns about valuation, concentration risk, and supply chain pressures.
Management pointed to Q3 revenue of $108 billion, plus or minus 2%, and previewed fiscal 2028 revenue growth of approximately 70%. The company also highlighted the importance of Vera Rubin's ramp in its business, with revenue per gigawatt climbing from $18 billion on Hopper to $40 billion on Vera Rubin.
The bull case for Nvidia remains intact at current prices, according to analysts. The risk/reward is asymmetric, with 39 upward EPS revisions in the past 30 days and zero downward revisions for fiscal 2028. However, a Q3 miss on Data Center Networking growth or a step-down in hyperscaler capex commentary could invalidate the thesis.