Nvidia Stock Soars After Q2 Earnings: Is NVDA Still a Buy?

NVDA surged 7% after reporting Q2 revenue of $96.22 billion, up 106% year-over-year, and raising fiscal 2028 guidance to approximately 70% growth. The chipmaker's Vera Rubin platform is ramping ahead of schedule, with orders placed by all major hyperscalers.

Gross margin compression is on the horizon. NVDA expects margins to fall from 75% to the 71-72% range as memory costs rise, a concrete headwind traders will need to price into forward multiples. The company's capital commitments remain substantial, though specific figures were not disclosed in the earnings release.

The beat comes as demand for AI infrastructure continues to outpace supply, with hyperscaler customers accelerating deployment timelines. NVDA's ability to pull forward the Vera Rubin platform launch signals robust execution, but the margin guidance suggests pricing power may be peaking as input costs climb.