What stage of the bull cycle are we in when people crowd bars to listen to an earnings call? We found out yesterday. With earnings season near an end, NvidiaNVDA

saved the best for last, delivering an earnings report of Super Bowl-sized proportions. But despite beating expectations, the company couldn’t quite deliver the Hail Mary investors were hoping for.

The legend continues: Analysts have called Nvidia “the most important stock” in the world — with its results carrying significant weight for its $3T valuation and the AI-driven global stock market rally. Leading up to the report, investors had sky-high expectations, anticipating that Nvidia’s sales and profits would more than double. In the end, the graphics chip giant exceeded those expectations, issuing guidance that left Wall Street stunned and Nvidia continuing its hot streak.

• Nvidia’s revenues soared 122% year-over-year (YoY) to $30B, easily beating the $28.7B analysts expected — 88% of which came from its data center business.
• The tech firm also reported a record net income of $16.6B, roughly half of its sales, and rewarded shareholders with a $50B share buyback along with its ongoing one-cent dividend.

Next Stop, Blackwell

While Nvidia’s strong performance didn’t shock semi-industry analysts, many stuck around to see if the industry leader’s advancement could continue. Last quarter, Nvidia’s revenue growth was up 262% YoY. This quarter, growth slowed to less than half that rate, and it’s expected to slow further to ~80% in the coming quarter. However, Nvidia may have a dark horse that could once again surprise Wall Street.

• The company forecasts $32.5B in revenue for Q3, about 2.5% higher than the $31.7B analysts estimated, which will include the first fulfilled orders of its next-gen Blackwell AI chips.
• CFO Colette Kress noted that Nvidia will ship “several billion dollars” worth of Blackwell units, which have already seen strong customer demand.

Forward-looking: Wall Street is all about expectations, and even after clearing demanding ones, investors weren’t completely impressed with Nvidia, as its stock tumbled ~7% after the market closed yesterday. Concerns centered on the more relaxed guidance and questions about the sustainability of Nvidia’s growth in FY 2025 and 2026. As Nvidia fell, the semiconductor industry followed in sympathy — with the VanEck Semiconductor ETFSMH

down 2%. Still, Nvidia has done the industry a big favor by signaling that the AI boom isn’t over — it might just be getting started.