Nvidia's robust earnings report and an upbeat revenue forecast for the upcoming quarter have propelled a significant rally in the technology sector. The company's stock, after a 1.59% dip during regular trading, soared 4.71% in after-hours trading following its announcement. Nvidia reported second-quarter fiscal year 2027 revenue of $96.22 billion, exceeding Wall Street's consensus of $92.27 billion, and an adjusted earnings per share of $2.22, surpassing expectations of $2.09. Its net income also surged 126% year-over-year to $59.69 billion. This strong performance, primarily driven by a 117% increase in data center revenue to $89 billion due to demand for AI semiconductors, set a new all-time revenue record for the 13th consecutive quarter.
The positive sentiment from Nvidia's results extended to other major tech players and global markets. Meta Platforms saw a 3.5% surge, while Microsoft experienced a slight pullback of 0.7% as investors reallocated capital. In Asia, the domestic stock market opened higher, with the KOSPI nearing the 7,000-point mark, driven by gains in semiconductor stocks like Samsung Electronics, which rose 3.25%, and SK Hynix, up 5.33%. Foreign investors were net buyers on the KOSPI, while retail and institutional investors posted net sales.
Despite Nvidia's strong performance, US stocks had closed slightly lower the previous day, with the Dow Jones Industrial Average falling 0.21% to 53,463.88, the S&P 500 slipping 0.02% to 7,675.70, and the Nasdaq edging down 0.08% to 26,130.20. This prior decline was attributed to hotter-than-expected inflation data, with annual US inflation rising 3.7% in July, and investor caution ahead of Nvidia's earnings. However, the S&P 500 had previously returned to 7,677.28 points due to a rebound in US Treasury yields and oil prices, positioning the market for Nvidia's earnings, US PCE data, and signals from Jackson Hole.
