Nvidia Reports Strong Q2 Earnings and Acquires Hugging Face
August 29, 2026
Nvidia (NASDAQ: NVDA) reported second-quarter earnings on August 29, revealing a 106% year-over-year revenue growth, marking the fourth consecutive quarter of acceleration. Following the earnings announcement, Nvidia’s stock rose by 7%. The company anticipates approximately 70% revenue growth for the next fiscal year, significantly exceeding Wall Street expectations.
In a notable expansion, Nvidia agreed to purchase the AI platform Hugging Face for $13 billion, a move highlighted by analysts as a defensive strategy to maintain market share in AI development. Nvidia’s CFO Colette Kress indicated that the top five hyperscalers might spend nearly $800 billion on capital expenditures in 2026, with forecasts exceeding $1.3 trillion in 2027.
Despite expected gross margins decreasing from around 75% to 72%, Nvidia’s long-term revenue projections suggest a fourfold increase over the next decade. The company’s current market valuation stands at $5.5 trillion, with a forward P/E ratio in the low 20s, below market averages.
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