Nvidia stock jumps over 8% during pre-market Nasdaq hours on strong Q2 earnings; here’s what experts say

Global AI chipmaking company Nvidia Corporation shares surged more than 8% during pre-market hours on Wall Street on Thursday, August 27, as investors focused on the company’s better-than-expected financial performance in the June quarter results for 2026.

Nasdaq data showed that Nvidia Corp. shares rallied 8.15% to touch a high of $226.78 apiece during the pre-market session before the opening bell on Thursday, in comparison to $209.66 apiece at the previous US equity market close.

The exchange data also showed that the before-hours trading volumes surged to more than 7.1 million during the pre-market session.

The AI chipmaking company announced its April to June quarter (Q2) earnings for the year 2026 during the after-hours session on Wednesday.

Although Nvidia shares ended 1.59% lower at $209.66 apiece after the trading session on Wednesday, the company’s stock surged around 4% during the post-market session after the Q2 results announcement.

How did Nvidia perform in Q2 earnings?

Official filing data showed that Nvidia posted a 106% year-on-year (YoY) surge in its revenues to $96.22 billion in the June quarter of FY27, in comparison to $46.74 billion in the same period a year earlier.

On a sequential basis, the revenues surged 18% to its June quarter levels, from $81.61 billion in the first quarter of FY27.

The data further showed that the company’s net profits increased 126% to $59.68 billion in the period under review, from $26.42 billion in the corresponding quarter of the previous financial year.

On the margins front, the gross margins witnessed a 260 basis point expansion to 75% in the second quarter results, from $72.4% in the same period a year earlier, as per the official filing.

Nvidia’s future outlook

The AI chipmaking company, Nvidia, management expects its revenues to surge to $108 billion with a tolerance band of 2%, while the gross margins are expected to be at 74% with a tolerance of 50 basis points on either side.

The company also said that they expect the GAAP and non-GAAP operating expenses to range around $9.2 billion and $9.0 billion, respectively in the third quarter of the financial year 2026-27.

“For the full year fiscal 2027, NVIDIA expects GAAP and non-GAAP tax rates to be between 16.0% and 18.0%, excluding any discrete items and material changes to Nvidia’s tax environment,” the company informed the exchanges and investors.

What do experts predict?

Viram Shah, Founder & CEO, Vested Finance, said that although the headline numbers remained strong in the Q2 results, Nvidia’s decline in margins in the period remained a concern.

“Supply commitments jumped from $119 billion to $279 billion in three months, mostly to lock up memory. The fix is a price increase next year. Customers will either pay it or push back, and next year's margins will show us the answer,” Shah said.

The expert also cited the surging cost of memory in the market due to the AI buildout itself as the reason behind the strong headline number in the June quarter earnings.

How have Nvidia shares performed?

Shares of Nvidia Corp. have delivered more than 826% returns on their investment in the last five years, and over 15% gains to investors in the last one year period, according to Nasdaq data.

On a year-to-date (YTD) basis, the company’s stock has risen 11% in 2026 and was up over 18% in the last six months, as per the exchange data.

Although Nvidia shares have risen 6.6% in the last one-month period, the AI chipmaking company’s stock has lost 4% in the last five sessions. The stock surged to its 52-week high of $236.54 apiece, while the 52-week low was at $164.07 apiece.

The company’s market capitalisation (m-cap) was at $5.07 trillion as of the stock market close on Wednesday, August 26, 2026.