Nvidia Jumps Over 7% in Pre-Market Trade on Thursday After Blowout Earnings

Aug 27: Nvidia Corporation‘s (NVDA) common stock was trading sharply higher in pre-market on Thursday at $225.63, up $15.97, or 7.62 per cent, as of 5:01 am ET. The stock, listed on the Nasdaq and part of the Nasdaq 100, showed the bid at $225.69 and the ask at $225.72, with pre-market volume already topping five million shares at this early hour. The stock has traded within a 52-week range of $164.07 to $236.54, with Thursday’s pre-market levels pushing it close to the upper end of that band. 

Pre-Market Trade 

Nvidia’s pre-market surge climbed sharply through the first hour of trading before holding steady at elevated levels, based on the stock’s intraday chart, with volume building fast as investors digested the company’s fiscal second-quarter results released after Wednesday’s close. The move followed CNBC’s report that shares were last up around six per cent in pre-market trade, as investors weighed chief executive Jensen Huang’s comment that artificial intelligence demand had reached an inflection point, with a rapidly growing number of companies now needing large clusters of GPUs. The early strength marked a sharp reversal from Wednesday’s session, when the stock had drifted lower ahead of the results. 

How The Stock Ended on Wednesday 

Nvidia’s common stock closed Wednesday’s regular session at $209.66, down $3.39, or 1.59 per cent, at 4 pm ET, before its results were released after the bell. The decline reflected pre-earnings caution rather than any negative news, with investors broadly unwilling to add to positions ahead of what is typically the most closely watched earnings report of the quarterly season for the technology sector. That caution reversed sharply once the numbers came in, with the stock’s after-hours and pre-market gains erasing Wednesday’s losses several times over. 

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Nvidia’s Blowout Fiscal Second-Quarter Results 

Nvidia reported fiscal second-quarter adjusted earnings of $2.22 a share, ahead of the $2.10 Wall Street had estimated, on revenue of $96.22 billion against a $92.17 billion estimate, and issued third-quarter guidance that also topped forecasts, CNBC reported. Net income more than doubled to $53.95 billion from $24.76 billion a year earlier, while revenue more than doubled from $46.7 billion in the year-ago quarter. Chief Financial Officer Colette Kress told analysts on the earnings call that Nvidia expects fiscal 2028 revenue growth of 70 per cent, well above the 44 per cent Wall Street had modelled, adding that customer forecasts point to growth doubling next year even as supply constraints shape the guidance. 

Why It Matters: AI Investment Cycle in Focus 

Almost every investor on Wall Street was awaiting Nvidia’s earnings as a bellwether for whether the enormous capital expenditure on artificial intelligence infrastructure would translate into a favourable season for the broad swathe of technology companies that remain knee-deep in AI investments. Nvidia sits at the centre of that build-out, with its chips powering the most advanced AI models and the company increasingly offering financial backstops and other arrangements that help new AI data centres get funded and built. A strong beat and confident guidance from Nvidia therefore served as reassurance not just for its own stock but for the wider AI trade, from chipmakers to hyperscalers to the data-centre supply chain. 

Competition and Cost Pressures 

Even so, the results landed against a backdrop of investor fatigue after a historic three-year rally, with Nvidia’s stock up only around 13 per cent so far in 2026 through Wednesday’s close, a pace only slightly ahead of the Nasdaq. Analysts have flagged rising competition from Advanced Micro Devices and Google, along with custom AI chips being developed by hyperscalers and AI labs, as an emerging threat to Nvidia’s near-monopoly in advanced AI silicon, CNBC reported. Soaring memory costs, driven by a worldwide chip shortage that shows no signs of easing, add another cost pressure even as demand for Nvidia’s own products remains strong. 

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Broader Market Cues 

Nvidia’s near four-year run since the launch of ChatGPT has repeatedly tested the limits of how large a technology company’s growth trajectory can be, and Thursday’s pre-market pop suggests investors are, for now, willing to extend that benefit of the doubt. Futures on the tech-heavy Nasdaq 100 rose broadly in early Thursday trade on the back of Nvidia’s guidance, according to Bloomberg, while European technology stocks also advanced, pointing to a global read-through from the results. 

Outlook 

With the stock continuing to hold its pre-market gains, investors will watch whether Nvidia can sustain Thursday’s momentum once regular trading gets under way, and whether the company’s supply-constrained but bullish guidance is enough to keep the broader AI trade moving higher through the rest of the earnings season. 

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Source

• https://www.nasdaq.com/market-activity/stocks/nvda