Nvidia Blew Wall Street Away with Its Q2 Results. Cathie Wood Is Celebrating by Buying More Than 243,000 Shares.

Global hyperscalers and enterprise buyers are committing record capital to artificial intelligence (AI) data centers, creating extraordinary demand for high-end GPUs and networking equipment. As the dominant supplier of AI accelerators, Nvidia is at the heart of this spending wave.

Nvidia’s latest results only strengthened that case when the company surpassed its Q2 FY2027 top- and bottom-line expectations. Moreover, management added that demand continues to outpace supply, meaning available capacity, not customer appetite, is currently the more pressing limitation.

Against this backdrop, Cathie Wood’s latest move stands out. Wood, ARK Innovation ETF’s (ARKK) CEO and CIO, led ARK Invest in buying 243,707 Nvidia shares on Friday, Aug. 28, across ARK Blockchain & Fintech Innovation ETF (ARKF), ARKK, ARK Autonomous Technology & Robotics ETF (ARKQ), ARK Next Generation Internet ETF (ARKW), and ARK Space & Defense Innovation ETF (ARKX). The total investment represents roughly $53 million.

More importantly, this was not an isolated purchase. ARK had already been accumulating Nvidia in August, including roughly $59.9 million in purchases on Tuesday, July 28; Wednesday, Aug. 5; and Monday, Aug. 10, followed by another approximately $22.8 million on Monday, Aug. 17. 

If Wood is committing tens of millions to Nvidia’s next growth phase, should investors follow or look closer first?

About Nvidia Stock

Nvidia is a leading AI infrastructure company headquartered in Santa Clara, California. With a market cap of roughly $5.3 trillion, the company delivers accelerated computing, networking, AI software, GPUs, gaming, professional visualization, data center, and automotive solutions.

On the price performance front, NVDA stock has gained 31% over the past 52 weeks and is up 20% year-to-date (YTD). More recently, the shares have added 12% in the last month, extending their upward momentum.

From a valuation perspective, Nvidia’s shares currently trade at 23.75 times forward adjusted earnings and 12.96 times sales, with both measures remaining above industry averages. 

Even so, these figures are below the company’s own five-year historical averages, which could make the current valuation more appealing to long-term investors seeking an attractive entry point.

The technology pioneer also returns capital to shareholders through an annual dividend of $1 per share, representing a 0.45% yield. That said, Nvidia is scheduled to pay its next quarterly dividend of $0.25 per share on Thursday, Oct. 1, with shareholders of record as of Thursday, Sept. 10, eligible to receive the payment.

Nvidia Surpasses Q2 Earnings

On Aug. 26, Nvidia unveiled its Q2 FY2027 earnings results. Revenue grew 105.9% year-over-year (YoY) to $96.22 billion, topping analyst estimates of $92.17 billion. Adjusted EPS rose 119.8% from the year-ago value to $2.22, beating the Street forecast of $2.10. 

Data Center remained the powerhouse, generating $89 billion. Hyperscale revenue reached $49 billion, while ACIE, covering neocloud, enterprise, industrial, and sovereign customers, reached $40 billion, up 138% YoY. Demand remains unusually strong, with the cloud industry backlog exceeding $2 trillion.

CapEx from the five largest hyperscalers is expected at nearly $800 billion in 2026 and $1.3 trillion in 2027. Nvidia also expects non-hyperscaler businesses to represent roughly half of Data Center over time, broadening its growth opportunity.

Product transition offers the next growth leg. Vera Rubin, Nvidia’s next‑generation, rack‑scale AI supercomputing platform, has entered production, with purchase orders from every major hyperscaler, AI cloud, and system OEM. 

Nvidia expects Rubin to represent approximately 20% of Data Center revenue in Q3. In addition, management expects Q3 FY2027 revenue of $108 billion, with a gross margin of 74%, while FY2028 revenue is expected to grow approximately 70% YoY.

The principal earnings risk is margin pressure. Memory pricing has risen beyond previous expectations, with gross margin expected to bottom at 71%-72% in Q4 and recover to 72%-73% in FY2028. 

Meanwhile, analysts expect Q3 FY2027 EPS to grow 99.2% YoY to $2.47. Full-year FY2027 EPS estimates sit at $9.10, implying 99.1% annual growth, while FY2028 estimates are projected to reach $15.12, adding another 66.2% YoY growth. 

What Do Analysts Expect for NVDA Stock?

Wall Street maintains an overall “Strong Buy” rating on NVDA stock, reflecting broad optimism among analysts covering the company. Of the 49 analysts following Nvidia, 44 rate the stock a “Strong Buy,” three assign a “Moderate Buy” rating, one recommends “Hold,” and one gives it a “Strong Sell” rating.

Against that backdrop, the average price target of $324.56 represents a potential upside of 44%. Meanwhile, the Street-High target of $515 suggests a possible gain of 128% from current levels.