NVIDIA is still raking in the cash. Hopefully this bodes well for AMD too?
NVIDIA (NASDAQ: NVDA) today reported revenue for the second quarter ended July 26, 2026, of $96.2 billion, up 18% from the previous quarter and up 106% from a year ago. For the quarter, GAAP and non-GAAP gross margins were both 75.0%. GAAP and non-GAAP earnings per diluted share were $2.46 and $2.22, respectively.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” said Jensen Huang, founder and CEO of NVIDIA. “And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”
I’m expecting AMD to perform well too. AMD is the one competitor to NVDA that is bringing product to the market in volume. Will they continue to sell out? Apparently AMD gpu’s are popular too. Major big companies using AMD Instinct GPUs for AI include Meta, Microsoft, OpenAI, Oracle, and Anthropic to name a few. AMD financials have been solid so far. NVDA has an edge in that they own every aspect of the AI product they bring to market where AMD uses a lot of open source software. I don’t think that is a necessarily bad thing for AMD but it certainly has been good for nvidia.
The AI sector and everything related is healthy and will grow for the foreseeable future (my opinion). There are still hundreds of billion$ up to trillions pouring into this arena. There is a shortage of chips, energy, water, data storage, software, skilled labor and etc so far. It’s a huge positive for the workforce as the trades are undermanned across the nation and commanding top dollar. This type of funding could be instrumental to bring back financially blighted communities. In the area where I live there are 2 (two) that I know of $500,000,000 data centers being built by one of the biggest companies in the world (rumor) not including the Fermi project (largest in the world). A few hours south are 2 IREN data centers under construction and they finished an IREN data center last year to the north of where I live. The companies building these centers are flying most of the workers in, paying for hotels, cars and food which is hundreds of thousands of dollars flowing into the local economy. I think we have at least few more years of this hyper growth. Investors should stay alert to early warning signs and get out before it comes back to earth in my opinion.
My personal opinion is that the dip in share price that occurred with the AI semiconductor neocloud sector of stocks was due to major institutional investors controlling media misinformation while moving into this sector at a discounted buy in. Smart investors bought the dip I think. There is no way there is a bubble or a slowdown in spending. I believe that I read there are thousands of data center in the works for the next few years. These are being built by the biggest companies and our government is probably involved as well. We will see as AMD, MU and others will be revealing earnings reports over the next month or so. Of course all this is just my humble opinion and certainly not to be construed as investment advice. I own some of these stocks and might not be a reliable source of information on these matters…doc
Notice that AI capital spending seems to be driving the economy. Giving us positive GDP. The consumer economy seems to be in recession. Numerous retail businesses report consumers are cutting back—presumably due to rising costs of everything but especially gas and groceries.
If the AI bubble ever does burst we could be in for a recession.