NASDAQ rises as Nvidia’s earnings fuel tech rally

Nvidia just posted the kind of quarter that makes analysts look like they’re playing with a broken calculator. The chipmaker reported fiscal Q2 2027 revenue of $96.2 billion, more than doubling its year-ago figure and sailing past Wall Street’s consensus estimate of roughly $92.2 billion. The Nasdaq Composite responded by climbing approximately 1.3% to 1.4% on August 27, touching an intraday high near 26,497.

Nvidia’s stock surged between 8% and 10% on the day, vaulting the company’s market capitalization back above $5.5 trillion.

The numbers behind the monster quarter

The data-center segment did the heavy lifting, generating $89 billion in revenue. That represents a 117% increase year-over-year, driven almost entirely by insatiable demand for AI training and inference hardware.

Adjusted earnings per share came in at $2.22, comfortably above analyst estimates that clustered around $2.09 to $2.10. GAAP net income hit $59.69 billion for the quarter.

But the real catalyst for the stock’s surge wasn’t the backward-looking numbers. It was the forward guidance. Nvidia projected Q3 revenue of approximately $108 billion, plus or minus 2%. For fiscal 2028, the company projected revenue growth of around 70%, a figure that left analysts scrambling to update their models. Prior consensus had growth pegged somewhere between 40% and 52%.

CEO Jensen Huang framed the moment in characteristically bold terms, declaring that AI has reached an inflection point where its productive capabilities translate directly into revenue.

What drove the broader tech rally

The earnings report functioned as a confidence injection for the entire AI supply chain. When Nvidia says demand is accelerating, it validates the capital expenditure plans of hyperscalers like Microsoft, Amazon, Google, and Meta, all of which have been pouring tens of billions into data-center buildouts. Those companies are both Nvidia’s biggest customers and major Nasdaq constituents themselves.

The 106% year-over-year revenue growth is particularly notable given the law of large numbers. Doubling revenue gets exponentially harder as the base grows. Nvidia managed it from an already massive starting point, suggesting the AI spending cycle has more runway than many investors had modeled.

Context and what comes next

The forward guidance of 70% revenue growth for fiscal 2028 suggests Nvidia’s management sees no slowdown on the horizon. That projection implies the company expects to generate well north of $400 billion in annual revenue within the next fiscal year.

Competition from custom silicon, including efforts by Amazon’s Trainium, Google’s TPUs, and various startups, continues to represent a longer-term risk. For now, though, Nvidia’s results suggest that the addressable market is growing fast enough to accommodate both merchant and custom chip solutions without meaningfully denting Nvidia’s growth rate.

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