Nvidia stock has gained 23% year-to-date, pulling ahead of the S&P 500 after the chipmaker posted $96.2 billion in fiscal second-quarter revenue, up 106% year over year. Net income more than doubled to $59.7 billion, and Nvidia expects 70% revenue growth in fiscal 2028. CEO Jensen Huang points to a broader base of AI customers behind the results.
Nvidia stock has climbed 23% year-to-date, once again running ahead of the S&P 500 after a sluggish start to the year. The rally gathered pace once the chipmaker reported its latest quarterly results.
Revenue and profit both accelerate
Nvidia earned $96.2 billion in its fiscal 2027 second quarter, a 106% year-over-year increase. Based on the company's guidance, it will soon bring in more than $100 billion per quarter. Net income also more than doubled, reaching $59.7 billion. Nvidia anticipates 70% year-over-year revenue growth in its fiscal 2028.
Even so, the stock's market cap has not run as fast as its earnings. Nvidia trades at a 25.4 forward P/E ratio and a PEG ratio below 0.60, suggesting its valuation could become more attractive still if the growth trend continues into its next earnings report.
A broader base of AI customers
Huang cited wider customer diversification when discussing the quarter. According to The Motley Fool: "today, we have a golden age of new AI labs and start-ups", a shift from a year earlier when one lab drove most of the buildout.
Nvidia's upcoming Vera Rubin platform is about to show up in future results, and hyperscalers are not the only source of demand. Huang also pointed to physical AI as a further opportunity, noting the company's GPUs remain the technological base regardless of which firms advance fastest in that space.
Its sluggish start to the year now looks like a fluke, given the numbers behind the rally.
Source: The Motley Fool
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