NVIDIA Corporation

NVIDIA Corporation (NASDAQ: NVDA) is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services.

Key Business and Financial Updates:

• NVIDIA Q2 Fiscal 2026 Financial Highlights: NVIDIA Corporation (NASDAQ: NVDA) announced its financial results for the second quarter of fiscal 2026, ended July 27, 2025, reporting revenue of USD 46.7 billion, reflecting a 6% increase from the first quarter and a 56% rise year-over-year. Data Center revenue reached USD 41.1 billion, up 5% sequentially and 56% from the prior year, with Blackwell Data Center revenue growing 17% quarter-over quarter. The company noted no H20 sales to China-based customers during the quarter but benefited from a USD 180 million release of previously reserved H20 inventory, stemming from approximately USD 650 million in unrestricted H20 sales to a non-China customer. GAAP and non-GAAP gross margins stood at 72.4% and 72.7%, respectively, with the non-GAAP margin adjusting to 72.3% excluding the inventory release. GAAP and non-GAAP diluted earnings per share were USD 1.08 and USD 1.05, respectively, with the non-GAAP EPS at USD 1.04 excluding the release and tax impacts.
• CEO Commentary and Shareholder Returns: Jensen Huang, NVIDIA's founder and CEO, emphasized the significance of the Blackwell platform as a groundbreaking AI advancement, noting its rapid production ramp-up and exceptional demand amid the surge in reasoning AI models requiring enhanced training and inference capabilities. He highlighted NVLink rack-scale computing as a timely innovation to meet these demands. During the first half of fiscal 2026, NVIDIA returned USD 24.3 billion to shareholders through share repurchases and dividends. As of the quarter's end, USD 14.7 billion remained under the existing repurchase authorization, with the Board approving an additional USD 60.0 billion on August 26, 2025, without expiration. The company declared its next quarterly cash dividend of USD 0.01 per share, payable on October 2, 2025, to shareholders of record on September 11, 2025.
• Q2 Fiscal 2026 Performance Summary: For the second quarter, GAAP revenue totaled USD 46.7 billion, with gross margin at 72.4%, operating expenses of USD 5.4 billion (up 8% sequentially and 38% year-over-year), operating income of USD 28.4 billion (up 31% sequentially and 53% year-over-year), and net income of USD 26.4 billion (up 41% sequentially and 59% year-over-year), yielding diluted EPS of USD 1.08 (up 42% sequentially and 61% year-over-year). On a non-GAAP basis, gross margin was 72.7% (or 72.3% excluding the inventory release), operating expenses were USD 3.8 billion (up 6% sequentially and 36% year-over-year), operating income reached USD 30.2 billion (up 30% sequentially and 51% year-over-year), and net income was USD 25.8 billion (up 30% sequentially and 52% year-over-year), resulting in diluted EPS of USD 1.05 (up 30% sequentially and 54% year-over-year), or USD 1.04 excluding adjustments.
• Third Quarter Fiscal 2026 Outlook: NVIDIA's outlook for the third quarter of fiscal 2026 projects revenue at USD 54.0 billion, plus or minus 2%, excluding any H20 shipments to China. GAAP and non-GAAP gross margins are anticipated at 73.3% and 73.5%, respectively, plus or minus 50 basis points, with the company expecting to conclude the year with non-GAAP gross margins in the mid-70% range. GAAP and non-GAAP operating expenses are forecasted at approximately USD 5.9 billion and USD 4.2 billion, respectively, with full-year fiscal 2026 operating expense growth projected in the high-30% range. GAAP and non-GAAP other income and expense are expected to yield an income of about USD 500 million, excluding gains or losses from equity securities. Both GAAP and non-GAAP tax rates are projected at 16.5%, plus or minus 1%, excluding discrete items.
• Segment and Product Innovations: In the Data Center segment, second-quarter revenue was USD 41.1 billion, up 5% sequentially and 56% year-over-year, featuring the NVIDIA RTX PRO 6000 Blackwell Server Edition GPU for enterprise servers, collaborations with global partners for AI infrastructure, and expansions in sovereign AI models. Gaming and AI PC revenue reached USD 4.3 billion, up 14% sequentially and 49% year-over-year, with launches like the GeForce RTX 5060 and DLSS 4 technology in over 175 games. Professional Visualization revenue was USD 601 million, up 18% sequentially and 32% year-over-year, including new RTX PRO GPUs and partnerships for digital manufacturing. Automotive and Robotics revenue totaled USD 586 million, up 3% sequentially and 69% year-over-year, with advancements in DRIVE AV software, DRIVE AGX Thor, Jetson AGX Thor, Halos safety platform, and Cosmos world foundation models.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 60.89, corrected from overbought levels, with expectations of a consolidation or a downward correction to important support of USD 150.00-USD 160.00. Additionally, the stock's current positioning is above the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels.

NVIDIA Corporation (NASDAQ: NVDA) reported second-quarter fiscal 2026 revenue of USD 46.7 billion for the period ended July 27, 2025, marking a 6% sequential increase and 56% year-over-year growth, primarily driven by Data Center revenue of USD 41.1 billion (up 5% QoQ and 56% YoY), with Blackwell Data Center revenue rising 17% sequentially, though no H20 sales occurred to China-based customers and results included a USD 180 million inventory release from USD 650 million in unrestricted H20 sales elsewhere. GAAP and non-GAAP gross margins were 72.4% and 72.7% (adjusting to 72.3% excluding the release), respectively, with GAAP operating income at USD 28.4 billion (up 31% QoQ and 53% YoY) and net income at USD 26.4 billion (up 41% QoQ and 59% YoY), yielding GAAP diluted EPS of USD 1.08; non-GAAP diluted EPS was USD 1.05 (USD 1.04 ex-release). CEO Jensen Huang highlighted Blackwell's pivotal role in AI advancements and NVLink's timely innovation for scaling models. The company returned USD 24.3 billion to shareholders in the first half of FY2026 via repurchases and dividends, with USD 14.7 billion remaining under authorization and an additional USD 60.0 billion approved on August 26, 2025, alongside a quarterly dividend of USD 0.01 per share. Outlook for Q3 FY2026 anticipates revenue of USD 54.0 billion (±2%), gross margins around 73%, and full-year non-GAAP gross margins in the mid-70% range, while segment revenues included Gaming at USD 4.3 billion (up 14% QoQ, 49% YoY), Professional Visualization at USD 601 million (up 18% QoQ, 32% YoY), and Automotive/Robotics at USD 586 million (up 3% QoQ, 69% YoY), supported by innovations like RTX PRO GPUs, DLSS 4, and DRIVE platforms. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is August 27, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.