The extended trading between Wednesday and Thursday, August 27, appears to have decisively broken Nvidia (NASDAQ: NVDA) stock’s week-long losing streak, as it featured a 7.56% upsurge from $209.66 to $225.50.
Indeed, the rally came shortly after the semiconductor giant decisively beat the ambitious earnings forecasts set for it by Wall Street analysts. Specifically, while the experts were calling for $92.17 billion in sales, Nvidia reported revenue of $96.22 billion.
Similarly, earnings per share (EPS) came in at $2.22 – well above the $2.10 estimate.
Still, despite the revenue effectively doubling relative to the same quarter one year prior – at the time, it came in at $46.7 billion – the fiscal year 2028 (FY2028) 70% growth forecast for the next year arguably proved the most impressive figure in the report, as analysts were expecting 44%.
Elsewhere, several points within the filing do give some reason to doubt the stability of the latest NVDA stock rally and Nvidia’s growth in the coming months.
Why Nvidia stock earnings rally might not last
To begin with, customer concentration remains a point of concern, with the blue-chip chipmaker revealing that 70% of its accounts receivable balance came from just five clients by the end of the second quarter (Q2) of FY2027.
Nvidia also revealed that it allows some customers making ‘investment-grade purchases’ to take advantage of plans extending the payment timeline from 90 days to 12 months.
The semiconductor giant also identified a new standalone risk factor – indebtedness – revealing a $25 billion commercial paper program and $35 billion in senior notes outstanding. According to the filing, $15 billion of debt is due in one to five years: a substantial increase from the $2.75 billion disclosed in the previous quarter.
Additionally, CEO Jensen Huang made a remark that big tech has already achieved the so-called artificial general intelligence (AGI) in a move that can be interpreted as either puzzling or overwhelmingly bullish.
While it is difficult to pin down the meaning of AGI – sometimes referred to as superintelligence and increasingly seen as a somewhat amorphous buzzword – it is traditionally used to describe machines that can act, learn, and think for themselves, akin to humans.
Nvidia to buy Hugging Face for $13 billion amidst apparent buyer drought
Finally, though not featured in the quarterly filing itself, Nvidia appears to have agreed to buy Hugging Face for just under $13 billion at roughly the same time as it unveiled the latest report.
Earlier this week, reports came out that Hugging Face was looking for a buyer at $13 billion, but the wording was arguably ambiguous and apparently indicated it was struggling to find interested parties.
2026 Nvidia stock price performance
Lastly, while the figures came in impressive despite the accompanying risk factors, the latest extended-session move might signal that NVDA stock is about to break out of the stupor that has been affecting it since 2026 started.
After rising approximately twentyfold since the artificial intelligence (AI) boom started with the public release of ChatGPT in late 2022, Nvidia shares have slowed down this year and were, at their latest closing price, 11.02% in the green year-to-date (YTD).
For comparison, the benchmark S&P 500 stock market index is up 11.92%, and the Nasdaq-100 is up 15.94% within the same timeframe.
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