Nvidia Posts 106% Revenue Growth to $96B and Guides to $108B Next Quarter Fueling Broad AI Rally

Nvidia reported second-quarter revenue of $96.22 billion, a 106% increase year over year, and guided for $108 billion in third-quarter revenue, well above the roughly 45% growth Wall Street had modeled. The company also issued an early fiscal 2028 outlook calling for approximately 70% revenue growth, a figure that caught analysts off guard and reignited confidence in the durability of AI infrastructure spending. Shares surged 8.7% on Thursday to $227.98, lifting the Nasdaq by more than 400 points and pushing the S&P 500 to weekly gains, though Nvidia gave back roughly 4% on Friday as investors took profits ahead of Federal Reserve Chair Kevin Warsh's Jackson Hole speech.

CEO Jensen Huang's net worth rose approximately $14.9 billion to $196.1 billion, making him the world's sixth-richest person, moving ahead of Meta's Mark Zuckerberg and Oracle's Larry Ellison. Asian markets broadly followed the lead, with Japan's Nikkei 225 gaining about 0.4% while India's Nifty IT sector surged nearly 3%. The results rippled through the broader ecosystem: Nvidia-backed cloud provider Lambda raised $1 billion in private short-term debt arranged by JPMorgan to finance Nvidia GPUs that will be leased by Microsoft, following a separate $926 million loan completed earlier in the month.

Blue Owl Capital separately led a $2.4 billion debt deal for cloud provider Iren to purchase Nvidia Blackwell Ultra GPUs for a Canadian data center campus. Amazon committed to 2 million additional Nvidia GPUs. Nvidia disclosed $279 billion in total supplier commitments, and Trump praised the company's results as reflecting American technological leadership while calling the numbers incredible.

Nvidia also warned of an AI power bottleneck and is bolstering support for Chinese open AI models even as it flagged potential White House restrictions. The company paused revenue-sharing deals with AI cloud partners, per the Wall Street Journal, a move that sent shares of SharonAI down 8%. Nvidia is reportedly pursuing a $12.9 billion acquisition of AI platform Hugging Face, a deal analysts say is aimed at filling the cloud capacity the company has already underwritten.

Michael Burry flagged Nvidia's $105 billion OpenAI guarantee as a circular financing red flag and sold half his Nvidia position, though he remains long-term bearish rather than fully exiting. Wedbush raised its Nvidia price target to $345 following what it called the company's first full-year guidance, and Gene Munster of Deepwater Asset Management forecast 90% revenue growth for calendar 2027. Goldman Sachs noted that on the day of Nvidia's melt-up, only about 30% of S&P 500 stocks and one of eleven sectors closed in the green, underscoring how concentrated the rally remains in a handful of AI names.