Nvidia posts blockbuster Q2 revenue, guides third-quarter sales higher

Nvidia Corp’s (NASDAQ: NVDA ) blockbuster second-quarter results have bullish investors doubling down, with Jim Cramer dismissing margin concerns and Ross Gerber arguing the AI chipmaker remains undervalued.

Nvidia Q2 Earnings Beat Expectations Nvidia reported fiscal second-quarter revenue of $96.2 billion, up 106% year over year, while net income jumped 126%.

Data Center revenue climbed 117% to $89 billion.

Nvidia expects third-quarter revenue of $105.84 billion to $110.16 billion, representing year-over-year growth of approximately 85.7% to 93.2% from the $57.01 billion it reported in the same quarter last year.

Jim Cramer Says Nvidia ‘Not Going to Stop Here’ Following the results, Cramer pushed back against investors focusing on Nvidia’s expected margin pressure from rising memory costs. "Ok, listen up pilgrims, Nvidia not going to stop here," Cramer said, questioning whether a roughly 2% gross-margin impact from higher DRAM costs was enough reason to sell the stock.

Ok, listen up pilgrims, Nvidia not going to stop here…. sell at $219?? Why, because he didn't pass on much of the DRAM increase we all know is happening? Is that really your thinking, a 2% gross margin hit from DRAMs..

Picayune!!!!! — Jim Cramer (@jimcramer) August 26, 2026 Nvidia’s gross margin rose to 75% in the quarter, compared with 74.9% in the previous quarter and 72.4% a year earlier.

Read Also: Ross Gerber Questions Bitcoin's Everyday Use Despite 'Endless Promise' Of Its Utility: Tesla Investor Says Haven't Sold Any BTC Unlike Michael Saylor Ross Gerber Sees Nvidia at $450 Gerber, president and CEO of Gerber Kawasaki, was even more bullish, calling Nvidia "undervalued" after the results. "Never seen a company make $60 bil net in a qtr. up over 100%," Gerber wrote on X, praising Nvidia’s management and execution.

Gerber said Nvidia could generate nearly $10 in earnings per share this year and suggested a historical multiple of 45 could put the stock around $450.

Just in case you're studying business history… Nvidia is redefining it.

I've never seen a company make $60 bil net in a qtr. up over 100%.

Firing on all cylinders, delivering.

Such good management.

My god Nvidia is under valued.

Looking like closer to $10 in EPS for this year.… — Ross Gerber (@GerberKawasaki) August 26, 2026 Analysts See AI Demand Accelerating In an emailed statement to, Futurum Equities chief market strategist Shay Boloor said Nvidia "delivered." Boloor highlighted the broadening demand for Nvidia’s chips, noting that hyperscale revenue reached $49 billion, while ACIE revenue climbed to $40 billion.

He said the figures show AI demand is expanding beyond major cloud providers to enterprises, industrial companies and sovereign customers.

Boloor said Nvidia’s gross margin is worth watching, with guidance falling from 75% in the second quarter to about 74% in the third quarter as the company ramps Rubin and secures more memory.

He noted that commitments jumped from roughly $119 billion to $279 billion in one quarter, while inventory rose to $32 billion, underscoring Nvidia’s aggressive push to secure HBM and other constrained components.

Boloor said the results strengthened the demand outlook but also highlighted rising financing and infrastructure costs as Nvidia ramps Rubin, expands its customer base and prepares for continued margin pressure.

Gene Munster Calls Nvidia AI Boom a ‘Tsunami’ Deepwater Asset Management’s Gene Munster described Nvidia’s outlook as the beginning of an AI "tsunami" of disruption, arguing that demand is spreading from hyperscalers to enterprises, industrial companies and other customers.

Get ready for an AI tsunami. $NVDA ’s CY27 revenue guide means the AI brain next year will be about 40% bigger than I thought 24 hours ago, which means the distribution will be greater than I previously expected. pic.twitter.com/T4zRZUqKdf — Gene Munster (@munster_gene) August 27, 2026 Price Action: Nvidia shares closed at $209.66, down 1.59%.

The shares rose 4.71% to $219.53 in after-hours trading, according to Pro.

According to Edge Rankings, Nvidia ranks in the 99th percentile for Growth and maintains positive price trend ratings across the short, medium and long term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.

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