Buy NVIDIA stocks on earnings release

NVIDIA stocks have plenty of room to grow after the company released a blowout quarterly report. The big reveal came on August 26, when the tech giant dropped its Q2 numbers, and they were an absolute stunner. Revenue hit a record $96.2 billion, jumping 18% from the previous quarter and more than doubling year‑on‑year, showing an impressive 106% surge. The data center business continues to steal the show, racking up $89 billion in revenue. This is a 117% annual increase. Net income soared 126% to $59.7 billion, while earnings per share (EPS) landed at $2.46. And what about gross margin? It saw a jaw-dropping 75% hike.

As impressive as these numbers are, the outlook is even more striking. Management's forward-looking guidance only adds fuel to the fire. The company is projecting roughly $108 billion in third‑quarter (Q3) revenue—and this figure doesn't even account for sales of computing solutions for data centers in China. Looking ahead to the next fiscal year, NVIDIA expects growth of around 70%, a significant upgrade from earlier forecasts.

What is driving this extraordinary momentum? Insatiable demand for AI computing power. NVIDIA is making steady progress on its next-generation Vera Rubin architecture, which is shaping up to be the next big step in its AI platform evolution. Meanwhile, tech heavyweights are doubling down on their infrastructure spending. Amazon plans to deploy an additional 2 million graphics processing units (GPUs) by 2028 through its partnership with NVIDIA, and Dell has booked over $130 billion in AI server orders in the last 12 months. As if that weren't enough, Anthropic has recently signed a deal with cloud provider Lambda valued at around $35 billion. When the biggest names in tech are writing checks of this size, it is clear that the AI build-out is far from being over—and this is great news for the firm's profits.

The final recommendation:

— Buy NVIDIA shares at the current price ($217), targeting $250 within one month.

— To hedge your position from adverse market movements, place a Stop Loss order at $205.