After NVIDIA's latest financial report was released, the risk appetite for tech stocks significantly rebounded. Nasdaq 100 index futures rose, and Bitcoin also saw a simultaneous rebound, reaching above $80,000 at one point. Some companies that possess both mining and AI infrastructure concepts also saw gains before the market opened.
Second-quarter revenue exceeded expectations
NVIDIA announced that its revenue for the second fiscal quarter as of July 26 was $96.22 billion, a 18% increase from the previous quarter and a 106% increase year-over-year, exceeding the market expectation of $92.2 billion.
Data center business remains the main source of revenue, with quarterly income reaching $89 billion, a 18% increase from the previous quarter and a 117% increase year-on-year, accounting for over 92% of total revenue. The company also stated that Vera Rubin has entered the full production phase.
Third-quarter guidance continues to be raised
NVIDIA expects its revenue in the third fiscal quarter to reach $108 billion, with a fluctuation of 2%, which is higher than the general expectation of around $104 billion on Wall Street.
However, this guidance does not include the revenue generated from China's data centers, indicating that export restrictions and geopolitical factors will still affect the markets that the company can serve. Management has also provided a forecast for the fiscal year 2028 in advance, stating that customer demand remains strong, but supply capacity may continue to be tight until the fiscal year 2028.
Bitcoin and mining company stocks rise in tandem
Market data indicates that Bitcoin has rebounded from a intraday low of around $77,658 to around $80,380, with a 24-hour increase of about 2.4%, retesting the $80,000 milestone.
Meanwhile, the NASDAQ 100 futures rose by about 1.1%. In pre-market trading, IREN rose by about 5%, while TeraWulf and Cipher Mining both rose by about 3%. Such stocks are generally considered to benefit from both the price of Bitcoin and the demand for AI computing power.
- Bitcoin once rose to around $80,380.
- Nahui 100 futures rose by about 1.1%
- IREN, TeraWulf, Cipher Mining are rising at the moment.
IREN has previously signed an AI infrastructure cooperation arrangement with NVIDIA. Previous reports indicated that this five-year cooperation is worth approximately $3.4 billion.
Profit margins and merger rumors continue to attract attention
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 drop to the range of 71% to 72%, and then stabilize at 72% to 73% for the fiscal year 2028.
In addition, The Information reports that NVIDIA has agreed to acquire the open-source AI platform Hugging Face for $12.9 billion. Reuters has also cited this news. However, as of press time, neither NVIDIA nor Hugging Face has issued any official announcements or regulatory documents to confirm this transaction.
Additional information:NVIDIA's stock price rose by about 8% at one point during the session, before the increase narrowed to around 7%, indicating that after the release of the financial report, what the market traded on first was the rebound in risk appetite brought about by earnings and guidance exceeding expectations.
