Everyone Loves a Winner: Investors Can’t Get Enough of Nvidia After Blowout Earnings
Retail investors have been piling into Nvidia for 15 straight trading sessions, and after a quarter that shattered nearly every estimate on the board, Wall Street is asking whether the buying frenzy has any ceiling at all.
Wall Street has a saying: everyone loves a winner. Right now, no name is winning like NVIDIA (NASDAQ:NVDA | NVDA Price Prediction). After the chipmaker delivered a record quarter last week, retail traders are hitting the buy button with a persistence rarely seen even in this cycle.
According to JP Morgan Equity Strategy & Quantitative Research, retail investors bought roughly $250 million in Nvidia shares on Wednesday, their third-largest daily purchase since mid-May. That extended the buying streak to 15 consecutive trading sessions, over which retail scooped up more than $2.5 billion in NVDA. Zoom out and the picture is even more lopsided: retail has bought over $30 billion in Nvidia stock over the past 12 months, the most among any Magnificent 7 name.
Blowout Numbers Set the Table
The buying followed an earnings report that beat on almost every line. Q2 FY2027 non-GAAP EPS came in at $2.22 against a $2.0887 consensus, while revenue of $96.22 billion grew 105.85% year over year. Data Center revenue reached $89.023 billion, up 117%, with Networking alone climbing 138%. It was Nvidia’s fifth consecutive quarter topping estimates.
CEO Jensen Huang framed the moment bluntly on the call:
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”
CFO Colette Kress added that Nvidia expects to grow revenue by approximately 70% in fiscal 2028, calling it “a supply-constrained outlook.” Q3 guidance of $108.0 billion, plus or minus 2%, excludes any China Data Center compute revenue.
Price Action Is Rewarding the Story
Shares closed at $220.78 on August 31, up 5.9% in a week and 9.98% in a month. Earnings day itself delivered a 8.74% pop, the strongest post-earnings reaction on file and a sharp break from the historical average day-of change of 0.14. Over five years, NVDA is up 887.01%.
Reddit reflected the euphoria. Sentiment on August 27 hit 67, labeled bullish, with activity registering 61 (high). One popular wallstreetbets thread, “Nvidia earnings proved 2 things again…”, drew nearly 1,083 upvotes. Options positioning is measured rather than manic, with a full-chain put/call ratio of 0.61.
What to Watch Next
Bulls have plenty to point to: hyperscaler capex tracking toward $1.3 trillion in 2027, a cloud backlog above $2 trillion, and Vera Rubin generating $40 billion per gigawatt versus Blackwell’s $25 billion. All of that buildout still has to be powered, cooled, and networked by somebody, which is why we profiled seven non-chipmaker suppliers riding the same wave in a free report. Risks remain real. Supply commitments have swelled to $279 billion, DSO stretched to 60 days from 45, and gross margin is expected to bottom in Q4 at 71% to 72% on memory pricing. At a P/E of 44, the stock is priced for continued execution. So far, retail is happy to keep an eye on the stock and keep buying.
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After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, and Money Morning. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.
