SANTA CLARA, California, August 27, 2026, 05:43 (EDT)
- NVIDIA traded at $225.12, up 7.37% before Thursday’s open, after closing 1.59% lower on Wednesday.
- Fiscal second-quarter revenue doubled to $96.22 billion; Data Center revenue rose 117% to $89.0 billion.
- The premarket move implied roughly $374 billion of added equity value, or 3.9 times quarterly revenue.
- Third-quarter revenue guidance reached $108 billion, while the gross-margin midpoint fell one percentage point.
NVIDIA Corporation (NASDAQ:NVDA) rose 7.37% to $225.12 in premarket trading at 05:43 EDT. The move followed quarterly revenue that more than doubled and a forecast above Wall Street expectations.
The $15.46 price increase across 24.19 billion basic shares implies about $374 billion of added market value. That equals 3.9 times NVIDIA’s $96.22 billion quarterly revenue. It also equals 5.9 times quarterly operating income.
NVIDIA reported $96.22 billion of fiscal second-quarter revenue, up 106% from a year earlier. GAAP operating income rose 124% to $63.73 billion. Net income reached $59.69 billion.
Data Center generated $89.0 billion, representing 92.5% of total sales. Revenue in that business grew 18% sequentially and 117% year over year. CEO Jensen Huang said AI was doing “useful work” and turning compute into revenue.
| Metric | Q2 FY2027 | Q1 FY2027 | Q2 FY2026 |
|---|---|---|---|
| Revenue | $96.22bn | $81.62bn | $46.74bn |
| GAAP gross margin | 75.0% | 74.9% | 72.4% |
| GAAP operating income | $63.73bn | $53.54bn | $28.44bn |
| GAAP diluted EPS | $2.46 | $2.39 | $1.08 |
Management expects third-quarter revenue of $108 billion, plus or minus 2%. The midpoint implies 12.2% sequential growth. The resulting range is $105.84 billion to $110.16 billion.
The forecast assumes no Data Center compute revenue from China. That makes demand elsewhere responsible for the full guide. NVIDIA expects gross margin of 74.0%, plus or minus 50 basis points, versus 75.0% last quarter.
Working capital expanded faster than revenue during the first half. Accounts receivable rose 64% from January to $63.06 billion. Inventory increased 48% to $31.58 billion. Those balances will test customer payment speed and supply planning.
Operating cash flow was $24.08 billion for the quarter. NVIDIA returned about $26.0 billion through repurchases and dividends. It retained $99.0 billion of repurchase authorization at quarter-end.
Analysts remain positive. FactSet’s 61-analyst consensus was Buy with a $305.79 average target before the release. Raymond James maintained Strong Buy and raised its target to $352 on August 25.
Reuters said at least ten brokerages raised targets after the results. NVIDIA traded at 17.9 times forward earnings, below Advanced Micro Devices at 37.2 times and Intel at 46.2 times.
Risks: The lower margin guide signals cost pressure as memory supply tightens. China restrictions remove a large market from the forecast. A slowdown in customer financing or collections would expose the $63.06 billion receivables balance.
The stock’s next test begins at Thursday’s 09:30 EDT open. Investors will compare the $225.12 premarket level with Wednesday’s $209.66 close and watch whether the $374 billion implied gain survives regular-session liquidity.
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