Nvidia Crushed Earnings Again. Here’s the Secret Growth Opportunity That Isn’t Even in the Numbers Yet.

Nvidia is reportedly considering a $12.9B acquisition of Hugging Face, part of a broader strategy including $18B in equity investments and a $20B licensing deal with Groq. Nvidia reported $96.2B in Q2 revenue, up 106% YoY, and guided to $108B for Q3. Regulatory scrutiny and potential deal collapse remain risks. Neither company has confirmed the transaction.

Nvidia reported fiscal Q2 revenue of $96.2 billion, up 106% YoY, and adjusted EPS of $2.22, beating expectations. Data center revenue grew 117%, led by hyperscaler and AI cloud demand. The company guided for 89% growth in Q3 and 70% in fiscal 2028, surprising investors. Nvidia's cash flow was strong, with $21.4 billion in free cash flow.

U.S. stocks declined on Friday, with the Nasdaq, S&P 500, and Dow all falling. Fed Chair Kevin Warsh's hawkish remarks at Jackson Hole increased expectations of a rate hike. Gold and semiconductor stocks, including Nvidia, dropped significantly. Gap shares surged after strong earnings and a new CEO announcement. Treasury yields rose in response to Warsh's comments.

Nvidia (NVDA) reported strong Q2 earnings and raised Q3 revenue guidance to $108B, driving its stock up 9% and boosting tech sector gains. Nasdaq, S&P 500, and Dow closed higher. Other notable movers include Okta (OKTA) +29%, Salesforce (CRM) +23%, and CrowdStrike (CRWD) +20%. Corporate profits surged $400B in Q2, partly due to $71B in tariff refunds.

The US Bureau of Industry and Security is investigating Apex Logistics, a subsidiary of Kuehne+Nagel, for allegedly shipping Nvidia AI servers to China in violation of US export restrictions. Apex acknowledged the probe, while Kuehne+Nagel stated it has not been contacted. Kuehne+Nagel shares fell 4.2% on August 27, 2026. The investigation focuses on 47 shipments with allegedly false shipping codes, potentially leading to civil penalties, denial orders, or criminal referrals.

Nvidia reportedly agreed to acquire Hugging Face for $12.9B, its largest deal ever, requiring antitrust review. The deal, if finalized, would face scrutiny for potential self-preferencing and competition concerns. Nvidia's Q2 revenue was $96.2B, up 106% YoY, with data center revenue at $89B.