Share price jumps 8.74% after earnings report, breaking a long-running jinx

Nvidia's logo is displayed at the company's headquarters in Santa Clara, California, on Wednesday (local time). [AFP]
Nvidia's logo is displayed at the company's headquarters in Santa Clara, California, on Wednesday (local time). [AFP]

Nvidia's share price surged 8.74% on Thursday (local time), the day after the company released its latest earnings, breaking a long-running jinx in which its stock had repeatedly fallen after results.

Nvidia's market capitalization grew by $442 billion on Thursday, the second-largest single-day gain on record, trailing only the $450 billion increase Microsoft posted last month.

Nvidia, the bellwether of the AI trade, has become deeply embedded in Wall Street sentiment after posting extraordinary growth since the AI boom began. Many investors had come to expect the chipmaker to beat forecasts, but those expectations grew so high that the stock fell after six of its previous eight earnings reports — including four consecutive quarters of post-earnings declines.

A significant number of options traders this week had also bet on a drop following the results, but were proven wrong.

After markets closed on Wednesday, Nvidia reported sales of $96.22 billion for the second quarter of fiscal year 2027 (May–July), a 106% increase from the same period last year. The result topped the market consensus of $92.17 billion compiled by financial data firm LSEG by more than $4 billion, marking a 13th consecutive quarter of record sales.

Earnings per share for the quarter came in at $2.22, above the market estimate of $2.10. Gross margin reached 75% and operating margin 66.5%.

Nvidia guided for a third-quarter gross margin of 74%, plus or minus 0.5 percentage points, down from 75% in the second quarter. The company projected gross margin would dip further to the 71–72% range in the fourth quarter before stabilizing at 72–73% from fiscal year 2028 onward.

Nvidia said it expects sales to grow 70% next year — the first time the company has offered a full-year revenue outlook.

Nvidia's rally lifted the IT sector to be the only gainer among all S&P 500 sectors on the day.


yckim6452@heraldcorp.com