Following NVIDIA's latest earnings report, risk appetite for tech stocks has clearly rebounded. Nasdaq 100 futures rose, and Bitcoin also rallied in tandem, briefly surpassing $80,000. Several companies combining mining and AI infrastructure themes saw pre-market gains.
Second-quarter revenue exceeded expectations
NVIDIA reported second-quarter revenue of $96.22 billion as of July 26, representing an 18% sequential increase and a 106% year-over-year increase, surpassing the market expectation of $92.2 billion.
Data center operations remain the primary source of revenue, with quarterly revenue reaching $89 billion, representing an 18% sequential increase and a 117% year-over-year growth, accounting for over 92% of total revenue. The company also stated that Vera Rubin has entered full-scale mass production.
Third-quarter guidance continues to be raised.
NVIDIA expects third-quarter revenue to reach $108 billion, plus or minus 2%, above the Wall Street consensus of approximately $104 billion.
However, this guidance does not include revenue from data center computing operations in China, indicating that export restrictions and geopolitical factors continue to affect the markets the company can serve. Management also provided forward-looking guidance for fiscal year 2028, stating that customer demand remains strong, but supply capacity is expected to remain constrained through fiscal year 2028.
Bitcoin and mining company stocks rise in tandem
Market data shows that Bitcoin rebounded from an intraday low of approximately $77,658 to around $80,380, rising about 2.4% over the past 24 hours and retesting the key psychological level of $80,000.
Meanwhile, the Nasdaq-100 futures rose approximately 1.1%. In pre-market trading, IREN increased by about 5%, while TeraWulf and Cipher Mining both rose by around 3%. These stocks are often viewed as crossover assets benefiting from both Bitcoin price movements and AI computing demand.
- Bitcoin once rose to approximately $80,380.
- Nasdaq 100 futures rose approximately 1.1%.
- IREN, TeraWulf, and Cipher Mining rise pre-market
IREN and NVIDIA previously signed a collaboration agreement on AI infrastructure. Previous reports indicated that this five-year partnership is valued at approximately $3.4 billion.
Profit margins and merger and acquisition rumors remain under scrutiny.
NVIDIA expects a gross margin of 74% for the third fiscal quarter, with a fluctuation of ±50 basis points. Management stated that due to rising memory prices, the gross margin for the fourth fiscal quarter may decline to the range of 71% to 72%, then stabilize at 72% to 73% in fiscal year 2028.
Additionally, The Information reported that NVIDIA has agreed to acquire the open-source AI platform Hugging Face for $12.9 billion. Reuters also cited this report. However, as of press time, neither NVIDIA nor Hugging Face has issued an official announcement or regulatory filing confirming the transaction.
Additional information: NVIDIA's stock rose as much as 8% during intraday trading before narrowing its gain to approximately 7%, indicating that the market initially reacted to the earnings report and guidance exceeding expectations with a rebound in risk appetite.