Semiconductor champion Nvidia (NVDA) delivered another more-than-solid earnings report after the closing bell on Wednesday, Aug. 27, showing earnings of $46.7 billion, up 56% year over year despite having no sales of its H20 chip in China. And while the stock slipped slightly after earnings, Nvidia got a huge endorsement today from one of Wall Street's top tech analysts.
"I think the boom is just starting," Wedbush Securities senior analyst Dan Ives told Bloomberg. "I mean, if you look at these numbers, especially when you factor in where China's going to be, I mean, [CEO Jensen Huang] talked about $50 billion, 50%-type growth number. This just shows the next stage of adoption is actually just starting. I think the stock is green today."
Headquartered in Santa Clara, California, Nvidia is the leading semiconductor company in the world, specializing in graphics processing units (GPUs) that are used to operate the most sophisticated and challenging programs that power artificial intelligence and machine learning. Nvidia's products are most in demand from data center operators who link hundreds of GPUs together to have them perform in tandem. The explosion in AI has pushed Nvidia to become the most world's valuable publicly traded company with a market capitalization of $4.4 trillion.
Nvidia stock continued its huge rise over the last year, jumping 41%, solidly ahead of competitors Advanced Micro Devices' (AMD) 15% jump and Intel's (INTC) 27% climb. Nvidia is also beating the larger market, as the Nasdaq Composite Index ($NASX) is up just 23% in the last year.
In terms of valuation, Nvidia has a trailing price-earnings ratio of 59.6x, which is close to its 10-year average P/E of 58.8x, indicating that earnings expectations are well in line with its historical norms.
Nvidia reported earnings on Wednesday for its second quarter of fiscal 2026 (ending July 27, 2025). Revenue was $46.74 billion, up 56% from a year ago and increasing by 7% from last quarter. Net income was $26.42 billion and $1.08 per share, up from $16.59 billion and $0.67 per share in the same quarter a year ago. Analysts were expecting revenue of $46.06 billion and EPS of $1.05.