Nvidia (NVDA) reported blockbuster second-quarter fiscal 2027 results on Aug. 26, led by a solid surge in data-center revenue, which climbed by a whopping 117% year-over-year (YOY) to $89 billion. With the data-center business making up more than 90% of its top line, Nvidia has capitalized on the fact that more companies need large GPU clusters.
While the semiconductor industry leader faces “threats” that its near-monopoly on advanced artificial intelligence (AI) chips may be coming to an end, Nvidia remains the primary beneficiary of the AI boom. The company is also reportedly set to buy open-source AI platform Hugging Face for $12.9 billion, aligning with CEO Jensen Huang’s strategy of building the AI world on the American stack.
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Given this backdrop, Nvidia’s data-center prowess may be the $89 billion reason to buy NVDA stock here.
About Nvidia Stock
Nvidia has emerged as the world’s most valuable company, driven by its dominance in AI and high‑performance computing (HPC). The firm’s GPUs and AI platforms power data centers, cloud services, and cutting‑edge applications, making it a central player in the global technology landscape and the engine behind the ongoing AI revolution. The company currently commands a massive market capitalization of $5.3 trillion.
Nvidia remains the primary beneficiary of the global AI infrastructure buildout, delivering repeated earnings beats, accelerating revenue growth, and raising guidance as demand for its AI chips and systems continues to outpace supply. Over the past 52 weeks, NVDA stock has gained 25%, while shares are up 17% year-to-date (YTD). Nvidia stock reached a 52-week high of $236.54 on May 14 but is now down 7% from that level. Still, based on its strong Q2 earnings report, NVDA stock is up more than 2% over the past five days.
On a forward-adjusted basis, Nvidia’s price-to-earnings ratio of 23.9 times is slightly higher than the industry average near 23 times.
Q2 Revenue Doubled on Data Center Boom
Nvidia’s blowout Q2 results for fiscal 2027 led to an almost 9% pop in NVDA stock on Aug. 27. The results highlighted accelerating demand, as Nvidia believes that AI has reached an inflection point. Total revenue rose 106% YOY to $96.2 billion, coming in above the $91.8 billion estimate Wall Street analysts expected. This was driven by a major tailwind from the data-center business.
