Nvidia shares have climbed 23 percent year to date, leaving the S&P 500 behind after a sluggish start to 2026. The move coincided with a fiscal second-quarter report that showed revenue more than doubling to $96.2 billion and net income reaching $59.7 billion, both up 106 percent from the same period a year earlier. The chipmaker now guides to quarterly revenue above $100 billion and sees 70 percent year-over-year growth continuing into fiscal 2028.

Revenue acceleration continues

Accelerating growth at this scale is rare. The $96.2 billion quarter represents a 106 percent increase from the prior year, and guidance points to the first $100 billion quarter in the company's history. Net income more than doubled alongside revenue, pushing margins higher even as the revenue base expands. The company has argued that the pace of fundamental improvement now exceeds the pace of stock appreciation, a dynamic that has compressed valuation multiples rather than stretched them.

Valuation stays reasonable

The stock trades at a forward price-to-earnings ratio of 25.4 with a PEG ratio below 0.60. Both metrics suggest the market is pricing in growth well below what management has guided. If the 70 percent fiscal 2028 revenue target materializes, the forward multiple would compress further without any share-price gain. The divergence between fundamentals and valuation has been a persistent feature of the past year, and the latest quarter did not reverse it.

Demand base broadens beyond hyperscalers

Jensen Huang described a shift in the customer mix. "This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and start-ups, multiple frontier labs scaling in parallel," he said in the Q2 FY27 release. The Vera Rubin platform is expected to appear in coming quarters, and Huang also pointed to physical AI as a new vector of demand. Nvidia's GPUs remain the underlying infrastructure regardless of which companies commercialize physical AI first.

What to watch next

The Motley Fool's Stock Advisor service omitted Nvidia from its latest top-ten list, a reminder that consensus bullishness is not universal. The next test is whether the $100 billion quarterly run rate holds and whether the 70 percent fiscal 2028 guide survives first contact with a tougher comparison base. For now, the numbers are doing the talking.