NVIDIA’s Blockbuster Q2 and AWS GPU Megadeal Could Be A Game Changer For NVIDIA (NVDA)
- In late August 2026, NVIDIA reported second-quarter fiscal 2027 results with sales of about US$96.22 billion and net income of roughly US$59.69 billion, issued third-quarter revenue guidance of about US$108 billion, plus or minus 2%, and outlined preliminary expectations for approximately 70% year-over-year revenue growth in fiscal 2028.
- On top of this earnings strength, NVIDIA and Amazon Web Services disclosed plans to deploy an additional 2 million NVIDIA GPUs across AWS’s global infrastructure in 2027–2028, underscoring how deeply NVIDIA’s full-stack AI platforms are being built into hyperscale cloud and AI factory buildouts.
- We’ll now explore how NVIDIA’s very strong earnings and ambitious fiscal 2028 growth outlook reshape the existing AI infrastructure investment narrative.
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NVIDIA Investment Narrative Recap
To own NVIDIA, you have to believe AI infrastructure spending stays large enough, for long enough, to support its full stack role across chips, systems, and software. The latest blowout quarter and bold fiscal 2028 outlook reinforce that thesis, while also sharpening the key near term swing factors: whether hyperscalers keep prioritizing NVIDIA over custom silicon, and whether supply chain and power constraints cap how much of this demand it can actually serve.
The expanded Amazon Web Services collaboration, with plans to deploy 2 million additional NVIDIA GPUs in 2027 to 2028, looks especially important here. It ties NVIDIA more tightly into one of its biggest hyperscale buyers at rack scale, directly connected to Vera Rubin systems, networking, and AI factory designs, and could matter more for the story than gaming oriented launches like the new GIGABYTE GeForce RTX 50 series bundle.
Yet behind the strong guidance, investors should also weigh how export controls and custom ASIC efforts could still reshape NVIDIA’s AI edge...
Read the full narrative on NVIDIA (it's free!)
NVIDIA's narrative projects $714.0 billion revenue and $392.6 billion earnings by 2029. This requires 41.2% yearly revenue growth and a $233.0 billion earnings increase from $159.6 billion today.
Uncover how NVIDIA's forecasts yield a $302.83 fair value, a 39% upside to its current price.
Exploring Other Perspectives
Some of the most cautious analysts were already assuming NVIDIA’s revenue would need to climb toward roughly US$660 billion by 2029, yet still saw meaningful margin pressure and a lower future valuation multiple, so this kind of AWS scale up could prompt them to revisit both their AI demand and export control risk assumptions in very different ways.
Explore 140 other fair value estimates on NVIDIA - why the stock might be worth as much as 86% more than the current price!
Decide For Yourself
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
- A great starting point for your NVIDIA research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
- Our free NVIDIA research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NVIDIA's overall financial health at a glance.
Ready To Venture Into Other Investment Styles?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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