Nvidia Doubles Revenue as AI Rally Roars

Nvidia's Q2 revenue doubled to $96.2B with a $108B guide, per Benzinga, powering an AI-led week.

According to Benzinga (via the Detroit Free Press), Nvidia reported second-quarter fiscal 2027 revenue of $96.2 billion after Wednesday's close, up 106% year-over-year and beating the $92 billion consensus by about 4.5%. Third-quarter guidance came in at $108 billion, roughly $4 billion above Street expectations, and data center revenue continued what Benzinga calls its parabolic trajectory. Shares closed 8.74% higher on Thursday, the biggest single-session gain since April 2025. The result capped a busy week that also featured a cybersecurity sector rally.

A 106% year-over-year revenue increase at Nvidia's scale is extraordinary, and the FY2028 growth guidance reportedly smashed expectations: Benzinga reports Nvidia guided for 70% revenue growth in fiscal-year 2028 versus estimates of 40%. The stock's 8.74% Thursday jump was its best day since April 2025, and the earnings beat landed in the same week Fed Chair Kevin Warsh's hawkish Jackson Hole speech pushed rate-hike odds sharply higher, a headwind for growth stocks.

Benzinga reports the week's most violent sector move came from cybersecurity and software names. CrowdStrike Holdings surged 20.5% on Thursday, the biggest single-day gain in the stock's history, on a record second-quarter print. Salesforce also delivered what Benzinga describes as an 80% earnings beat with above-expected guidance, unveiled 'Claudeforce,' a deepened Anthropic partnership making Claude the default AI model across Slack and core Salesforce products, and booked a $2.6 billion mark-to-market gain on its Anthropic stake. Salesforce shares rallied over 20% for the week, topping the S&P 500 weekly leaderboard.

Not every AI-linked name kept pace. Marvell Technology fell 10.3% even though, per the AP, profit and revenue edged past expectations and CEO Matt Murphy said its artificial-intelligence business is strong and raised forecasts; analysts said much of the optimism may already have been priced in after the stock entered the day up 184% for the year. PayPal also fell following Bloomberg News' report that Advent and Stripe abandoned their buyout pursuit, per Reuters.

The juxtaposition matters for investors: AI earnings momentum is colliding with a Fed that may tighten further. Warsh said inflation readings this summer 'do not tell me that underlying trends have meaningfully improved,' and CME data showed the probability of a 25-basis-point September hike climbing to 57.5%, up 22.1 percentage points from 35.4% a day earlier, according to Bloomingbit. AP reported the 2-year Treasury yield jumped to 4.35% from 4.22% just before the speech as traders bet on a hike as soon as next month.

The Fed's next FOMC meeting is scheduled for Sept. Bank of America's Aditya Bhave, cited by Reuters, argued the onus was on Warsh to deliver a hike in September unless August jobs and inflation data are very soft, or he risks losing credibility. For tech investors, the question is whether Nvidia-style beats can keep offsetting a rate environment that Warsh says is not yet restrictive.