Q2 reinforced Nvidia's tremendous dominance
Revenue was up 106% to a whopping $96.2 billion, while adjusted earnings beat expectations again, with management forecasting $108 billion in current-quarter sales. Moreover, Nvidia took things up a notch, projecting 70% revenue growth for fiscal 2028, suggesting the AI infrastructure boom still has plenty of room to run.
Those numbers seem almost impossible to believe, considering that Nvidia generated just $6.7 billion in sales in fiscal 2023's Q2, during the pre-ChatGPT era.
Nevertheless, investors are uneasy over data-center spending, margin pressures from memory pricing, and the remarkably costly ecosystem financing. Those major concerns have effectively made each quarterly report a test of whether the AI giant can continue blowing past expectations.
According to all the technical data, Nvidia has delivered eight EPS beats and seven revenue beats over the past two years — an impressive feat, to say the least.
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Modify on 2026-09-01 18:05
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$Shanghai Enflame Technology Co.,Ltd.(688801)$
Enflame, which is backed by tech giant Tencent, is considered one of China's so-called "four little dragons" of AI chipmaking and is the last of that group to go public.
The other three all surged on listing, and have remained higher since. In December, MetaX soared nearly 700% on its first day of trading, while Moore Threads gained over 400% on its trading debut. Biren jumped 76% on its IPO in January.
Investors are betting on the ability of domestic AI chipmakers to replace Nvidia in China. International chipmakers led by Nvidia accounted for nearly 60% of China's AI accelerator market in 2025, according to IDC data cited in Enflame's prospectus, translated by CNBC.
Nvidia has seen its exports in China's data center compute market shuttered by U.S. export controls and Beijing's lukewarm interest in importing advanced chips as the country pursues tech self-sufficiency.
China's semiconductor buildout is accelerating. Goldman Sachs said in an August report that growing foundation models and AI applications in China were driving development across AI chips, foundries, memory and advanced packaging.
The analysts expect China's semiconductor capital spending to reach $82 billion by 2030, driven by capacity expansion in memory and advanced nodes amid a growing generative AI trend.
Local startups such as Moonshot AI's Kimi K3 closed the gap to the frontier with leading U.S. models, and Chinese AI systems are seeing growing uptake across the globe. Rival Z.ai said its GLM-5.3-Flash model runs entirely on China-made chips. Analysts said the company likely used a combination of chips from leading Chinese domestic player Huawei, as well as chips from Enflame and other local companies.
Alibaba is also developing its own AI chips and accompanying software, as well as optimizing systems for leading Chinese models.
Revenue surges
Founded in 2018, Enflame is building AI processors as China looks to boost its efforts in model building amid major capability gains from domestic developers.
Enflame said it plans to use proceeds from the listing to develop and commercialize its fifth- and sixth-generation AI chips, as it seeks to match the performance of high-end products from international rivals.
The company reported revenue of 990 million yuan ($147 million) in 2025, up from 722 million yuan a year earlier, but has yet to turn a profit.
Tech hardware has become a key driver of Chinese stock performance in recent months.
In July, shares of chipmaker CXMT, which makes dynamic random-access memory (DRAM) chips, a key feature of some AI systems, soared nearly 466% in their debut on Shanghai's tech-heavy STAR Market, making CXMT the most valuable China-listed company.
Nvidia's stock got a boost from Dell Technologies' earnings on Wednesday, with analysts noting that the server maker's commentary helped validate Nvidia's view of a robust and expanding artificial-intelligence market.
"Dell's results present a further sign that the enterprise market for AI compute has momentum beyond the current hyperscaler market," D.A. Davidson analyst Gil Luria told MarketWatch, referring to computing power. The server maker reported what analysts said was a blowout quarter, as revenue for its AI server business doubled relative to a year before. While there's been clear momentum in demand for computing power among the hyperscalers, analysts believe Dell's (DELL) results show
$Shanghai Enflame Technology Co.,Ltd.(688801)$
$NVIDIA(NVDA)$
Enflame, which is backed by tech giant Tencent, is considered one of China's so-called "four little dragons" of AI chipmaking and is the last of that group to go public.
The other three all surged on listing, and have remained higher since. In December, MetaX soared nearly 700% on its first day of trading, while Moore Threads gained over 400% on its trading debut. Biren jumped 76% on its IPO in January.
Investors are betting on the ability of domestic AI chipmakers to replace Nvidia in China. International chipmakers led by Nvidia accounted for nearly 60% of China's AI accelerator market in 2025, according to IDC data cited in Enflame's prospectus, translated by CNBC.
Nvidia has seen its exports in China's data center compute market shuttered by U.S. export controls and Beijing's lukewarm interest in importing advanced chips as the country pursues tech self-sufficiency.
China's semiconductor buildout is accelerating. Goldman Sachs said in an August report that growing foundation models and AI applications in China were driving development across AI chips, foundries, memory and advanced packaging.
The analysts expect China's semiconductor capital spending to reach $82 billion by 2030, driven by capacity expansion in memory and advanced nodes amid a growing generative AI trend.
Local startups such as Moonshot AI's Kimi K3 closed the gap to the frontier with leading U.S. models, and Chinese AI systems are seeing growing uptake across the globe. Rival Z.ai said its GLM-5.3-Flash model runs entirely on China-made chips. Analysts said the company likely used a combination of chips from leading Chinese domestic player Huawei, as well as chips from Enflame and other local companies.
Alibaba is also developing its own AI chips and accompanying software, as well as optimizing systems for leading Chinese models.
Revenue surges
Founded in 2018, Enflame is building AI processors as China looks to boost its efforts in model building amid major capability gains from domestic developers.
Enflame said it plans to use proceeds from the listing to develop and commercialize its fifth- and sixth-generation AI chips, as it seeks to match the performance of high-end products from international rivals.
The company reported revenue of 990 million yuan ($147 million) in 2025, up from 722 million yuan a year earlier, but has yet to turn a profit.
Tech hardware has become a key driver of Chinese stock performance in recent months.
In July, shares of chipmaker CXMT, which makes dynamic random-access memory (DRAM) chips, a key feature of some AI systems, soared nearly 466% in their debut on Shanghai's tech-heavy STAR Market, making CXMT the most valuable China-listed company.
Nvidia's stock got a boost from Dell Technologies' earnings on Wednesday, with analysts noting that the server maker's commentary helped validate Nvidia's view of a robust and expanding artificial-intelligence market.
"Dell's results present a further sign that the enterprise market for AI compute has momentum beyond the current hyperscaler market," D.A. Davidson analyst Gil Luria told MarketWatch, referring to computing power.
The server maker reported what analysts said was a blowout quarter, as revenue for its AI server business doubled relative to a year before.
While there's been clear momentum in demand for computing power among the hyperscalers, analysts believe Dell's (DELL) results show that the data-center buildout is supporting demand growth for enterprise hardware too, which could be a boon for Nvidia (NVDA). There have been concerns that major cloud providers were overwhelmingly driving sales of AI hardware.
Wedbush analyst Matt Bryson told MarketWatch that Dell's results support Nvidia's "optimism around non-hyperscale growth."
Nvidia's stock rose 3.2% on Wednesday.
Broader market dynamics may have also been working in Nvidia's favor on Wednesday.
Rebecca Wettemann, CEO of technology-research firm Valoir, said Nvidia was likely benefitting from a general market rebound on Wednesday as investors responded to momentum in oil prices and a pullback in Treasury yields. However, she said in emailed comments that the market would continue to be volatile "given the geopolitical and economic uncertainty."
"Nvidia's fundamentals are strong, and its recent earnings announcements and guidance gave investors confidence that it continues to have strong demand and a pretty significant moat in its chip business," Wettemann said.
Last week, Nvidia reported blockbuster second-quarter earnings results, which led to the company achieving its largest one-day market-capitalization gain on record. The company expects revenue to grow by about 70% in the 2028 fiscal year, which runs through January of that year.
Jed Ellerbroek, a portfolio manager at Argent Capital Management, said "investors are becoming more valuation conscious" across the chip and broader AI-infrastructure trade, and Nvidia looks like "the best company in this area" given its "attractive multiple."
Nvidia's stock got a boost from Dell Technologies' earnings on Wednesday, with analysts noting that the server maker's commentary helped validate Nvidia's view of a robust and expanding artificial-intelligence market.
"Dell's results present a further sign that the enterprise market for AI compute has momentum beyond the current hyperscaler market," D.A. Davidson analyst Gil Luria told MarketWatch, referring to computing power.
The server maker reported what analysts said was a blowout quarter, as revenue for its AI server business doubled relative to a year before.
While there's been clear momentum in demand for computing power among the hyperscalers, analysts believe Dell's (DELL) results show that the data-center buildout is supporting demand growth for enterprise hardware too, which could be a boon for Nvidia (NVDA). There have been concerns that major cloud providers were overwhelmingly driving sales of AI hardware.
Wedbush analyst Matt Bryson told MarketWatch that Dell's results support Nvidia's "optimism around non-hyperscale growth."
Nvidia's stock rose 3.2% on Wednesday.
Broader market dynamics may have also been working in Nvidia's favor on Wednesday.
Rebecca Wettemann, CEO of technology-research firm Valoir, said Nvidia was likely benefitting from a general market rebound on Wednesday as investors responded to momentum in oil prices and a pullback in Treasury yields. However, she said in emailed comments that the market would continue to be volatile "given the geopolitical and economic uncertainty."
"Nvidia's fundamentals are strong, and its recent earnings announcements and guidance gave investors confidence that it continues to have strong demand and a pretty significant moat in its chip business," Wettemann said.
Last week, Nvidia reported blockbuster second-quarter earnings results, which led to the company achieving its largest one-day market-capitalization gain on record. The company expects revenue to grow by about 70% in the 2028 fiscal year, which runs through January of that year.
Jed Ellerbroek, a portfolio manager at Argent Capital Management, said "investors are becoming more valuation conscious" across the chip and broader AI-infrastructure trade, and Nvidia looks like "the best company in this area" given its "attractive multiple."
Nvidia's stock got a boost from Dell Technologies' earnings on Wednesday, with analysts noting that the server maker's commentary helped validate Nvidia's view of a robust and expanding artificial-intelligence market.
"Dell's results present a further sign that the enterprise market for AI compute has momentum beyond the current hyperscaler market," D.A. Davidson analyst Gil Luria told MarketWatch, referring to computing power.
The server maker reported what analysts said was a blowout quarter, as revenue for its AI server business doubled relative to a year before.
While there's been clear momentum in demand for computing power among the hyperscalers, analysts believe Dell's (DELL) results show that the data-center buildout is supporting demand growth for enterprise hardware too, which could be a boon for Nvidia (NVDA). There have been concerns that major cloud providers were overwhelmingly driving sales of AI hardware.
Wedbush analyst Matt Bryson told MarketWatch that Dell's results support Nvidia's "optimism around non-hyperscale growth."
Nvidia's stock rose 3.2% on Wednesday.
Broader market dynamics may have also been working in Nvidia's favor on Wednesday.
Rebecca Wettemann, CEO of technology-research firm Valoir, said Nvidia was likely benefitting from a general market rebound on Wednesday as investors responded to momentum in oil prices and a pullback in Treasury yields. However, she said in emailed comments that the market would continue to be volatile "given the geopolitical and economic uncertainty."
"Nvidia's fundamentals are strong, and its recent earnings announcements and guidance gave investors confidence that it continues to have strong demand and a pretty significant moat in its chip business," Wettemann said.
Last week, Nvidia reported blockbuster second-quarter earnings results, which led to the company achieving its largest one-day market-capitalization gain on record. The company expects revenue to grow by about 70% in the 2028 fiscal year, which runs through January of that year.
Jed Ellerbroek, a portfolio manager at Argent Capital Management, said "investors are becoming more valuation conscious" across the chip and broader AI-infrastructure trade, and Nvidia looks like "the best company in this area" given its "attractive multiple."