To The Moon

After‑hours on August 26, $英伟达(NVDA)$ released its Q2 FY2027 earnings report. Revenue hit $96.22 billion, up 105.9% year‑over‑year, beating market consensus of $92.38 billion. Adjusted EPS came in at $2.20, also exceeding expectations, with gross margin holding steady at 75%.

Following the earnings print, NVIDIA’s after‑hours stock jumped 4.7%, pulling the whole semiconductor complex higher. $SK海力士(SKHY)$ surged 5%, $闪迪(SNDK)$ and $美光科技(MU)$ gained over 3%; $英特尔(INTC)$, $阿斯麦(ASML)$, $美国超微公司(AMD)$ and $台积电(TSM)$ also advanced.
Semiconductor ETFs saw sharp after‑hours moves as well: $三倍做多半导体ETF-Direxion Daily(SOXL)$ soared 7.3%, $3倍做多韩国ETF-Direxion(KORU)$ jumped 10.8%, $Roundhill Memory ETF(DRAM)$ rose 4.6%, while $半导体指数ETF-HOLDRs(SMH)$ and $iShares费城交易所半导体ETF(SOXX)$ climbed more than 2.5%.

NVIDIA’s critical Data‑Center segment posted revenue of $89.023 billion, a 116.6% year‑over‑year increase, surpassing the market consensus of $85.8 billion. Revenue is largely driven by hyperscale cloud operators such as Amazon and Google. According to Bloomberg, Amazon plans to deploy an additional 2 million high‑end NVIDIA GPUs (Blackwell Ultra, Rubin, Rubin Ultra) across 2027‑2028. Even with its in‑house chip development efforts, Amazon continues large‑scale purchases of NVIDIA AI hardware. This underscores persistent demand for NVIDIA’s compute products and provides tangible order support for the segment’s robust growth.

During the earnings call, CFO Colette Kress stated that NVIDIA expects FY2028 revenue growth of approximately 70%, well above the prior analyst consensus of 45%. Revenue guidance for the coming quarter was set directly at $108 billion. At the center of the AI boom, NVIDIA’s upbeat sales outlook for FY2028 eased market concerns over a potential slowdown in AI spending.

Notably, the company warned that surging memory costs will compress gross margins in the coming months. Management expects margins to bottom out in Q4 fiscal year (ending next January) at 71%‑72%.

Major clients including Microsoft, Amazon and Google keep ramping up AI‑infrastructure investment, so NVIDIA’s core growth thesis remains intact and the AI‑compute cycle is still underway. Nevertheless, the earnings report flags near‑term gross‑margin pressure from higher HBM costs, with Q4 margins projected to fall to 71%‑72%. Per Bloomberg reports, NVIDIA intends to raise prices on its AI server systems by 15%‑17% next year. Price hikes could offset rising component costs and help stabilize gross margins.

For the stock: I view the sharp after‑hours rally as largely sentiment‑driven. The Q4 gross‑margin headwind has not been fully priced in, so chasing the price higher in the short term is not advisable.
Over the longer run, two factors will dominate performance: whether the planned price increases can be successfully implemented to offset cost pressures, and the sustainability of cloud‑capex spending. Should gross margins stabilize as anticipated and large‑customer demand keep materializing, the stock still has upside potential.