SANTA CLARA, California, August 30, 2026, 07:12 (EDT)
- NVIDIA lost about $251 billion of market value on Friday as its shares fell 4.57%.
- Fiscal third-quarter revenue guidance implies 12.2% sequential growth, while gross margin is expected to decline one percentage point.
- The stock still ended roughly 3.7% above Wednesday’s pre-earnings close after Thursday’s 8.7% rally.
NVIDIA Corporation (NASDAQ: NVDA) fell 4.57% to $217.55 on Friday. The decline erased about $251 billion of equity value, based on 24.1 billion shares outstanding.
The retreat followed an 8.7% earnings rally on Thursday. Even after Friday’s reversal, NVIDIA finished roughly 3.7% above Wednesday’s close. That two-day path shows investors still reward growth, but now charge quickly for margin risk.
Second-quarter revenue reached $96.2 billion, up 106% from a year earlier. Data Center produced $89.0 billion, or 92.5% of total revenue. GAAP operating income more than doubled to $63.7 billion NVIDIA results.
Management forecast $108.0 billion of third-quarter revenue, plus or minus 2%. That midpoint implies 12.2% sequential growth. However, expected gross margin slips to 74.0% from 75.0%.
| Investor measure | Q2 FY2027 actual | Q3 FY2027 outlook | Change |
|---|---|---|---|
| Revenue | $96.2 billion | $108.0 billion midpoint | +12.2% sequential |
| Gross margin | 75.0% | 74.0% midpoint | -1.0 percentage point |
| China Data Center compute | Included in reported results | No revenue assumed | Guidance excludes contribution |
At Friday’s $5.24 trillion market value, NVIDIA trades near 12.1 times annualized third-quarter revenue guidance. The valuation therefore assumes sustained growth well beyond the current quarter.
Management expects fiscal 2028 revenue to grow about 70%. Morgan Stanley had modeled 52%, while consensus was nearer 40%, according to Reuters. The company also warned that memory shortages could constrain industry growth.
Working capital is expanding with the business. Accounts receivable rose to $63.1 billion from $38.5 billion in six months. Inventory increased to $31.6 billion from $21.4 billion. Those balances support delivery growth but increase execution sensitivity.
NVIDIA returned about $26.0 billion through buybacks and dividends during the quarter. Another $99.0 billion remained authorized. That balance equals about 1.9% of Friday’s market capitalization.
Wall Street remains constructive. Sixty-seven analysts carry an average Buy recommendation and a $334.67 target, according to MarketWatch. The target implies about 54% upside, although analyst objectives are not guarantees.
Friday’s volume reached 195.1 million shares, 37% above the 65-day average. The Nasdaq fell 0.52%, while the S&P 500 lost 0.25%. Fed Chair Kevin Warsh’s inflation warning added a broader valuation headwind Reuters market close.
Risks: Memory constraints could limit shipments. A prolonged absence from China’s Data Center compute market would narrow growth options. Customer spending delays would pressure both revenue and the premium multiple.
The next confirmed investor event is the Goldman Sachs Communacopia + Technology Conference on September 10. Investors will seek evidence that supply and gross margin can support the $108 billion quarterly target NVIDIA investor calendar.
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