Adjusted earnings came in at $2.22 per share, also ahead of the $2.10 analysts expected.

The strong results sent NVDA shares higher in after-hours trading. The stock was last up about 7% following the earnings announcement and also received a boost from the company’s upbeat forecast for future growth.

NVIDIA Sees Another Big Year Ahead

Investors were bullish on NVIDIA’s guidance.

CFO Colette Kress said the company expects 70% revenue growth in fiscal 2028, well above the roughly 44% growth Wall Street had expected. Kress said customer forecasts “point to our growth doubling next year,” although she stressed that supply constraints will limit how much of that demand the company can actually fulfill, as noted by CNBC.

CEO Jensen Huang has also become increasingly bullish about the AI market. He has described artificial intelligence as reaching an “inflection point” as businesses and technology companies move from experimenting with AI to building it into their operations.

Analysts See Major Upside

Bernstein (NYSE: AB) analyst Stacy Rasgon said NVDA’s latest results should remind investors why they own the stock. Rasgon pointed to the enormous demand for NVIDIA’s chips and the company’s upcoming Vera Rubin product platform. The firm also has an Outperform rating on the company and raised its price target to $400 from $315.

Other major Wall Street firms were also positive following NVIDIA’s report.

Bank of America (NYSE: BAC) maintained a Buy rating and a $350 price target. The firm highlighted NVDA’s 70% fiscal 2028 growth forecast, saying it was significantly above consensus expectations.

The bank also pointed to roughly $500 billion in cumulative multiyear supply and other commitments. 

Morgan Stanley (NYSE: MS) raised its price target to $300 from $288 and kept an Overweight rating. Analyst Joseph Moore said NVDA’s longer-term revenue and gross-margin outlook was particularly encouraging.

Wells Fargo (NYSE: WFC) maintained an Overweight rating and a $315 price target. The firm cited the company’s strong competitive position in gaming GPUs as well as its growing opportunities in data centers, high-performance computing and AI applications such as autonomous vehicles, healthcare and robotics.

Goldman Sachs Raised its Price Target to $300

Goldman Sachs (NYSE: GS) raised its target to $300 from $285 and maintained a Buy rating. Analyst James Schneider said the company’s outlook was consistent with the most optimistic expectations among investors and created a clearer path for the stock to outperform the broader market.

JPMorgan (NYSE: JPM) raised its NVDA price target to $320 from $280 and kept an Overweight rating. Analyst Harlan Sur highlighted NVIDIA’s growing involvement in financing AI infrastructure.

NVIDIA is increasingly providing financial support and other arrangements that help AI companies and data center operators raise the money needed to build new facilities.

JPMorgan believes these efforts could create new recurring revenue opportunities for NVDA beyond its traditional hardware business.

UBS (NYSE: UBS) raised its price target to $300 from $280 and maintained a Buy rating. Analyst Tim Arcuri said the company’s decision to provide a clearer forecast for 2027 was especially important. He also argued that demand remains well above the company’s official outlook and could rise further if the company can overcome supply and data center capacity issues.

Jefferies (NYSE: JEF) also has a Buy rating and a $300 price target. The firm said NVDA’s 70% growth forecast could be a floor rather than a ceiling, with demand potentially closer to 100% growth if supply were unlimited. Jefferies even sees a path toward $1 trillion in annual revenue by 2029.

The Big Question for Investors

For NVIDIA investors, the latest earnings report answers one major question: AI demand is still incredibly strong. The bigger question is whether the company can keep up. The company must manage supply constraints, rising memory costs and increasing competition while continuing to meet the enormous expectations built into its stock price.

For now, Wall Street appears confident.

NVDA’s latest results suggest the AI spending boom still has plenty of room to run—and that the company’s biggest growth opportunities may still be ahead.

W shares have already had a strong August after posting better-than-expected second-quarter results. Total revenue reached $3.5 billion, up 7.5% from the same period last year. U.S. revenue jumped 8.7% to $3.1 billion. International revenue declined 1.3%, showing that most of the company’s current growth is coming from the U.S.

Orders were another bright spot.

The company delivered 10.6 million orders during the quarter, an increase of 6% from a year earlier. CEO Niraj Shah said the company experienced its strongest sequential order growth for a second quarter since 2020.

The number of active customers also increased. Wayfair ended June with 21.7 million active customers, up 3.3% year over year. Customers are also spending more, with revenue per active customer increasing 4.2% to $596.

The U.S. Business Is Leading the Way

Bernstein analyst Nikhil Devnani believes Wayfair’s U.S. performance is especially important.

The broader furniture market is not growing much, yet the company’s U.S. revenue is increasing at a high-single-digit rate. That means the company appears to be gaining market share from competitors. Management said U.S. revenue growth was the strongest it has seen during the entire post-COVID period.

Several parts of the business are performing particularly well. Wayfair’s specialty retail brands grew nearly 20% during the quarter, while luxury brand Perigold grew more than 35%.

In addition, the company generated $242 million in adjusted EBITDA during the quarter, representing a 6.9% margin. That was the company’s strongest margin performance since 2021.

Free cash flow was also impressive. Wayfair generated $301 million of free cash flow during the quarter, compared with negative free cash flow in the previous quarter.

What Comes Next?

Wayfair’s outlook for the third quarter is encouraging. Management expects high-single-digit revenue growth for the quarter. Importantly, that forecast does not assume that the broader economy or furniture market will suddenly improve.

Instead, Wayfair expects its own initiatives to drive growth. These include its loyalty program, Wayfair Verified, and its physical store strategy.

The company expects adjusted EBITDA margins of roughly 6% to 7% in the third quarter. Management is also confident that it can eventually reach a 10% margin and potentially go beyond that level. Bernstein also believes the company’s improving cost discipline could make future revenue growth more valuable. 

The Bottom Line For Wayfair

Wayfair’s second-quarter results provide several reasons for investors to pay attention.

Revenue is growing, U.S. market share appears to be increasing, customers are becoming more active, and profitability and cash flow are improving. Specialty brands and Perigold are adding another source of growth, while new initiatives such as loyalty programs and stores could provide additional momentum.

For now, management appears confident. With third-quarter revenue growth expected to remain in the high single digits and a longer-term goal of reaching double-digit margins, the company is showing signs that its business may be on a stronger path than many investors previously expected. That combination of growth, improving profitability, and market-share gains is why Wayfair may be a stock worth keeping an eye on.