Nvidia shares climbed 6.7% to approximately $223.71 in premarket trading on Aug. 27 after the chipmaker reported stronger fiscal second-quarter results and issued an above-consensus outlook, lifting Bitcoin and AI infrastructure stocks.
Nvidia Earnings Beat Revenue and Profit Estimates
Nvidia reported revenue of $96.22 billion for the quarter ended July 26, up 18% from the previous quarter and 106% from one year earlier. The result exceeded the $92.2 billion Visible Alpha consensus estimate. Non-GAAP diluted earnings reached $2.22 per share, compared with expectations near $2.09. GAAP net income reached $59.69 billion and diluted earnings of $2.46 per share. Data Center remained the company's dominant division, with revenue reaching $89 billion, rising 18% sequentially and 117% from the prior-year quarter, accounting for more than 92% of total revenue.
Nvidia returned approximately $26 billion through share repurchases and dividends during the quarter. The rally briefly reached about 8% earlier in the session. This earnings beat builds on Nvidia's record quarterly performance, as covered in the NVIDIA revenue report earlier today.
Bitcoin and AI Infrastructure Stocks Move Higher
Bitcoin rose from an intraday low near $77,658 to approximately $80,380, gaining roughly 2.4% to test the psychologically important $80,000 level. The move coincided with stronger U.S. technology futures and gains across global semiconductor stocks. Bitcoin frequently trades alongside growth equities during broad risk-on sessions, but the relationship changes over time and does not establish Nvidia's earnings as the sole catalyst.
Companies connecting Bitcoin mining infrastructure with AI computing also advanced before the U.S. opening bell. IREN gained about 5%, while TeraWulf and Cipher Mining each rose approximately 3%. These companies have been redirecting power capacity and data centers toward high-performance computing. This market rally reinforces the technical strength noted in the Bitcoin bull score reaching 80 earlier this week.
Nvidia's $108 Billion Outlook Supports the Rally
Nvidia expects fiscal third-quarter revenue of $108 billion, plus or minus 2%, exceeding Wall Street expectations near $104 billion. The outlook assumes no Data Center compute revenue from China. Management also offered an unusually early fiscal 2028 forecast, with CFO Colette Kress saying customer projections indicated that Nvidia's growth could double next year. However, Nvidia expects revenue growth of approximately 70% because supply will remain constrained.
CEO Jensen Huang said AI agents can require 15 to 100 times more computing power than conventional interactions initiated by human prompts. Separately, The Information reported that Nvidia agreed to acquire open-source AI platform Hugging Face for $12.9 billion, though neither company had published an official announcement at the time of writing. Nvidia expects third-quarter gross margin of 74%, with margins potentially bottoming between 71% and 72% in the fourth quarter because of higher memory prices.
