Nvidia (NVDA) Blowout Earnings Suggest AI Appetite Far from Waning

Nvidia (NVDA) posted blockbuster earnings once again yesterday, with news of record-breaking results and raised guidance that may dispel some of the fears over whether artificial intelligence spending will wane.

CEO Jensen Huang said that AI has reached its “inflection point,” saying tokens are productive and profitable while compute has now become revenue.

“This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam,” Huang said in the earnings press release.

Earnings & Guidance Crushed Expectations

The advanced AI computer chip designer’s shares are up 6% in the premarket after smashing expectations with adjusted earnings per share of $2.22 against the $2.09 estimate. Nvidia also posted a hefty revenue beat of $96.2 billion vs. the $91.85 billion estimate, a 106% increase year-over-year and an 18% jump from the previous quarter. Most of the revenue (about $89 billion) came from the Data Center segment and helped bring in adjusted net income of $59.7 billion – more than double the year-over-year number of $26.42 billion. See Closing Bell: U.S. Markets Drifted Ahead of Nvidia Earnings, which Beat Expectations

As for guidance, CFO Colette Kress said the company expected fiscal 2028 revenue growth of 70%, far beyond the 45% increase analysts expected. The report also projected 3Q revenue of $108 billion (+/- 2%), once again assuming zero Data Center computer revenue from China.

New Products & Partnerships

The announcement included the unveiling of Nvidia Vera, the first CPU built for AI agents, and the launch of the Nvidia DSX platform to help design, build, and operate AI factories at scale. They also announced that the Vera Rubin supercomputing platform, which is designed for agentic AI and advanced reasoning, is ramping into full production with racks running at many major companies including Alphabet’s (GOOGL) Google Cloud, Microsoft’s (MSFT) Azure, Oracle’s (ORCL) Cloud, CoreWeave (CRWV), and Nebius Group (NBIS). See Maher: Jensen Huang "Captain" of AI Ship, NVDA "Backstop" to Tech Trade

Reports of Hugging Face AI platform Acquisition

The earnings report provided little new info about share buybacks, and dividend payouts were left unchanged. However, another unrelated piece of news also broke yesterday, which is that Nvidia is in talks to acquire the AI platform Hugging Face, according to various sources, which said the two companies were discussing a deal with a potential value near $13 billion. Hugging Face is an online platform and community for AI and machine learning that has been described as the “GitHub for AI” for being a centralized space where developers can collaborate and share their work.

Technical Resistance Levels to Watch and Options Info

Shares were up roughly 6% premarket, posting a significant breakout beyond a short-term downward channel shape beginning with recent highs near 227 on Aug. 14. One notable upside level stands out as a resistance point to watch today, which is the opening of a downside gap around 225. Beyond that, another intraday upside spike stands out near 232 on Jun. 2 after price stopped short of taking out the all-time highs of 236.54 on May 14. Meanwhile, Wednesday’s high of 213.60 now marks a downside gap opening to watch for potential support, with relative lows of 207 from Aug. 24 also making a significant short-term low.

The options market as of Wednesday’s close projected a potential expected move of about +/-12.8 (6.1%) by the weekly Aug. 28 expiration, which gave an upper boundary of around $222.50. Another notable piece of information is that the Oct. 16 monthly expiration’s possible expected range came in at about +/-26.7 (12.7%), which suggested that the market was not looking for new all-time highs in that time frame.

The key for investors may not be the earnings beat itself, but management's confidence that AI infrastructure spending remains strong enough to support 70% revenue growth in FY2028, reinforcing Nvidia's position as a leader in the AI trade.

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