Nvidia results review

Trading on Thursday is dominated by Nvidia’s results. US stock futures are pointing to a higher open later, as tech stocks lead the charge higher and Nasdaq futures are pointing to a 0.8% gain. European indices are not following the same cues, and are mostly lower, as investors redevelop a taste for tech.

The FTSE 100 is the weakest European index, as the oil price comes under further pressure, hitting the energy majors. The Brent crude price is down by a further 1% on Thursday, and is trading just above $85 per barrel, down 7% this week. 

With the focus back on the AI trade, here are the details of Nvidia’s results, which were nothing short of stunning for last quarter. The company reported revenues of $96.22bn, easily beating expectations of $92.17bn and doubling what was reported in Q2 2025. If anyone was concerned that the pace of growth in recent years would start to fade, there are no signs of that. Net income also doubled compared to a year ago, and came in at $53.95bn, or $2.22 per share, up from $1.87 a year ago. 

The company also provided a strong forecast for future revenues, it expects sales for this quarter to cross the $100bn mark, and top $108bn, $4bn more than analysts had expected. This comes even though the company is not expecting any data centre sales to China. Shareholders were given some sweeteners in the form of an extra $26bn share buyback programme, and a dividend. 

The share price has surged on this report and is higher by more than 5% in overnight trading, which is a break from recent history. In the last 4 quarters, Nvidia’s share price has fallen after the last four earnings reports. However, if the pre-market rally continues into Thursday, this would suggest that the cycle has been broken, and we could embark on a new bullish phase for Nvidia’s share price. 

So, what is driving these massive revenues? 

• Firstly, there has been an explosion in its customer base. Nvidia doesn’t publish customer numbers with its earnings report, but Jensen Huang said that last year one lab was driving the AI buildout, now there are multiple lab buildouts at once. Huang called it a golden age for AI, in the US and around the world. A broader customer base will keep revenue growth buoyant, it also means that Nvidia is less reliant on hyperscaler capex spend to continue to grow its own revenues. 
• It’s not just the hyperscalers who want data centres, revenue from other parts of the market is now starting to pick up steam. Nvidia Cloud customers, along with industrial and enterprise clients now make up $40.3bn of revenue, up more than 100% in a year. The hyperscalers generated $48.7bn. Another reason why the stock price is rallying is because other parts of the market are quickly catching up to the hyperscalers. 
• There has been a lot of concern about Nvidia’s equity investments in other AI companies, however, so far, they are paying off. Net income for last quarter included a $7.8bn gain in equity investments, which include Intel and SpaceX.
• While some are worried about a circular financing model that could leave Nvidia exposed if the investments turn sour, Nvidia’s supporters argue what else is a cash-generating machine like Nvidia supposed to do with its money? The company reported data centre sales of $92bn last quarter, and makes 92% of its revenues through its data centre and chip sales unit. 
• When your bread and butter business is performing at this level, Nvidia has plenty of money to invest to broaden the global AI ecosystem, and there could even be upside if money generated through these investments feed back into Nvidia’s sales. 

Nvidia’s results a shot in the arm for the AI trade 

With revenues this big, and demand for its products getting bigger every month, it will be a brave trader who will bet against Nvidia in the aftermath of this report. For now, the company has proven that criticism of its investment and financing model for AI is overblown, and today’s results could give the whole AI trade, and the US stock market, a shot in the arm, after a volatile few months for the tech trade. 

The global stock market impact 

These results are good news for Nvidia’s suppliers after the company said that it would double its supply commitments to $279bn, primarily related to memory costs. Nvidia’s largest memory suppliers include SK Hynix, Samsung and Micron. The latter has seen its share price rise more than 3% in the post market, and we could see South Korea’s Kospi perform well on the back of Nvidia’s monster earnings report. 

If the rally continues into Thursday, as we expect, then Nvidia’s stock price could break through the $220 barrier, which would open the door to the $235 highs from May.