NVIDIA fiscal Q2 revenue doubles to $96.22 billion

NVIDIA reported second-quarter fiscal 2027 revenue of $96.22 billion, a 105.8% increase from the prior year, with Data Center sales rising 117% to $89.02 billion. The results align with a recent assertion by chief executive Jensen Huang that artificial intelligence has reached an inflection point where compute resources directly generate revenue.

The company’s shares are currently trading at $223.55 on the NASDAQ, representing a year-to-date gain of 20.15%. Over a five-year period, the stock has appreciated by 932.51%. While the share price has climbed significantly, earnings growth has outpaced this increase, creating conditions for potential revaluation. NVIDIA’s market capitalization stands at approximately $5.395 trillion.

Analyst sentiment remains strongly positive, with 49 Buy ratings and 10 Strong Buy ratings against a single Sell rating. The average price target is set at $328.72, implying roughly 47% upside from the current level. Consensus estimates for fiscal 2028 earnings per share have risen to $15.9146, up from $12.7102 just 90 days earlier. In the last 30 days alone, analysts issued 46 upward revisions and no downward ones.

This trajectory projects approximately 71% growth in earnings per share compared to the $9.3124 expected for the current fiscal year. NVIDIA has exceeded earnings estimates for six consecutive quarters, most recently reporting $2.22 per share against an expectation of $2.0887. At the current price, the stock trades at 14 times fiscal 2028 estimates, a multiple lower than the S&P 500's forward earnings range of roughly 21 to 23 times, despite NVIDIA's faster growth rate.

A move to a $400 share price would require a gain of about 79% and place the stock at approximately 25 times forward earnings. Historically, NVIDIA has achieved gains exceeding 79% in ten calendar years since 2000, including increases of 239% in 2023, 171% in 2024, 227% in 2016, and 125% in 2021.

Several factors could constrain future performance. Memory costs may reduce gross margins to a low range of 71% to 72%, and current outlooks exclude data center revenue from China. Supply constraints are expected to persist through fiscal 2028. The potential for a significant price increase depends on whether the Vera Rubin product ramps as planned and if hyperscaler spending remains stable.