NVIDIA Corporation (NVDA.US) staged a "Back to the Future" style comeback: a 70% growth guidance stunned Wall Street, prompting analysts to sing its praises and sparking a concentrated surge of bullish sentiment in the options market.

Against the backdrop of a continuous explosion in demand for artificial intelligence (AI) computing power, NVIDIA Corporation (NVDA.US) announced its latest quarterly results, once again demonstrating its unshakeable dominance in the AI chip sector with figures that far exceeded market expectations. What shocked Wall Street even more was that the company provided guidance for total revenue in fiscal year 2028 that was nearly $200 billion above market consensus, directly driving its stock price up nearly 7% in pre-market trading and prompting multiple analysts to raise their target prices. According to data, for the quarter ending July 2026 (the second quarter of the companys fiscal year), NVIDIA Corporation achieved revenue of $96.2 billion, a year-over-year increase of 106%, far surpassing Wall Streets expectation of about $92 billion. The net profit reached $59.69 billion, with earnings per share of $2.46, compared to a net profit of $26.42 billion and earnings per share of $1.08 during the same period last year, with an increase of over 125%. The gross margin remained high at 75%, though slightly below previous market expectations. From a business structure perspective, the data center segment remains the absolute core, with quarterly revenue reaching $89 billion, a year-over-year increase of 117%. The company stated that demand for the Blackwell Ultra platform remains strong, with significant revenue increases from sovereign AI, AI-native enterprises, and corporate clients. Additionally, revenue from the edge computing business was $7.2 billion, reflecting a quarter-over-quarter increase of 13% and a year-over-year increase of 27%. Operating expenses rose 55% year-over-year to $8.41 billion, reflecting the company's sustained high investment in research and development and market expansion. NVIDIA Corporation founder and CEO Jensen Huang stated in the earnings report, AI has reached a turning point; it is doing useful work, tokens are becoming productive and profitable. Now, computing power itself is revenue. He further pointed out that the expansion of AI infrastructure is running at full speed, and the next-generation Vera Rubin platform has fully launched, achieving the fastest product ramp-up speed in the companys history. For the current quarter (August to October), NVIDIA Corporation provided revenue guidance of about $108 billion, exceeding analysts' expectations of $103.9 billion and representing a year-over-year increase of approximately 89%. At the same time, the company expects a gross margin of about 74% for this quarter, slightly below Wall Street's expectation of 75%, primarily affected by product mix and initial ramp-up costs. However, what really ignited the market was the companys outlook for the full fiscal year 2028. NVIDIA Corporations CFO Colette Kress stated in the conference call that the company expects revenue for fiscal year 2028 to grow by 70% year-over-year, while Wall Street's consensus expectation was only 44%. More importantly, Kress emphasized that this 70% growth level is still constrained by supply, and actual demand is growing at over triple digits. Based on the approximately $396 billion revenue in fiscal year 2027, the revenue for fiscal year 2028 is expected to reach about $673 billion, which would surpass Apple Inc. (AAPL.US) and Alphabet (GOOGL.US), making it the second-highest revenue-generating tech company worldwide, only behind Amazon.com, Inc. (AMZN.US). NVIDIA Corporation's new financial guidance shocked Wall Street, staging a Back to the Future style comeback. Jefferies analyst Blayne Curtis directly quoted the iconic title from Star Wars in his report, calling this guidance The Emperor Strikes Back to describe NVIDIA Corporations astonishing performance outlook. He pointed out, The key takeaway from this earnings report is the guidance for 70% revenue growth for the full year of fiscal 2028, while Wall Street expected only 44%, corresponding to $700 billion in revenue, with consensus at only $570 billion, which is $200 billion higher than the previous $1 trillion Blackwell plus Rubin framework. The 70% growth is just the baseline, with unconstrained demand approaching 100%. Based on this foundation, we clearly see a path for revenue to reach $1 trillion in fiscal year 2029, a staggering figure for a company of this scale. Curtis maintained a "Buy" rating on NVIDIA Corporation, with a target price of $300. Other institutions also offered lavish praise, with Evercore ISI being one of them. Evercore ISI analyst Mark Lipacis significantly raised his target price from $413 to $465, maintaining an Outperform rating. He believes that the upward revenue outlook is enough to offset the downward guidance on gross margin (72%-73% for the calendar year 2027, previously in the mid-70% range) and the companys provision of $160 billion in multi-year guarantees and commitments to help clients secure land, power, and shell capacity. Lipacis wrote, We believe NVIDIA Corporation has two catalysts: one is entering a positive capital return cycle, and the other is the potential to stabilize or even increase market share by 2027. Given our projected P/E ratio of 13 times for earnings per share in the 2027 calendar year, NVIDIA Corporation is one of the most attractive risk-reward ratios within our coverage range. Bank of America Corp analyst Vivek Arya reiterated NVIDIA Corporation as his top pick and maintained a Buy rating, believing that management has demonstrated an impressive visionincluding guidance, off-balance-sheet disclosures, supply conditions, and a temporary decline in gross marginthat should quiet critics for a while. Management has clearly shown how strategic investments will help NVIDIA Corporation solidify its dominance in the 'once-in-a-lifetime' AI boom, and this vision is convincing, Arya wrote in his report. J.P. Morgan raised its target price from $280 to $320 while maintaining an Overweight rating. The firm noted that data center growth is accelerating, demand for Blackwell Ultra is strong, and the Vera Rubin platform has begun shipping, receiving orders from major hyperscale cloud providers, AI cloud providers, and system OEMs. The company stated this is its fastest product ramp-up in history. J.P. Morgan expects gross margins to hit bottom in Q4 of fiscal year 2027 and then recover in fiscal year 2028, with the gross margin outlook for fiscal 2028 supported by HBM supply commitmentsthe company has locked in known price HBM supply for most of the demand. Mizuho raised its target price from $300 to $315 while maintaining an Outperform rating. The firm expects revenue for fiscal year 2028 to reach about $700 billion, representing a year-over-year increase of over 70%, well above the current consensus of $574 billion. Mizuho also anticipates that Blackwell Ultra will continue its ramp-up, with Vera Rubin potentially contributing about 20% of revenue in the October quarter. Regarding gross margin, it is expected to drop to about 74% in the October quarter, down 100 basis points quarter-over-quarter, reaching a low of 71%-72% in January before stabilizing at 72%-73% in fiscal year 2028. The target price of $315 is based on approximately 20 times P/E ratio for fiscal year 2028 earnings. Goldman Sachs Group, Inc. raised its target price from $285 to $300 but maintained a Neutral rating. Analyst James Schneider believes that with strong prospects for calendar year 2027, the stock price will maintain recent gains, but it may show volatility between the surprising guidance and already high market expectations. He specifically noted that management is committed to returning over 50% of excess cash flow to shareholders, which could provide additional support for the stock price. Moreover, the mid-term gross margin guidance of 72%-73% for calendar year 2027 helps alleviate investor concerns about rising input costs, while more transparent disclosures regarding customer financial guarantees and commitments also help investors better assess potential financial risks. Options Market: One-Month Target Aimed at $260 The options market was also bustling after the earnings report was released. According to options trading data, before the report, the implied volatility priced in by the options market for NVIDIA Corporation was about 6.1%, and the nearly 7% increase in pre-market trading on Thursday fell squarely within this forecast range. As earnings trading settled, market attention swiftly shifted to the options chain expiring on September 25. The implied volatility of this options chain indicates that the market expects NVIDIA Corporations price fluctuation to be approximately 10.1% over the next month, corresponding to a price range of about $202 to $247 (based on pre-market prices). However, what is particularly noteworthy is the distribution of open interest in call options. The open interest for call options with a strike price of $260 reached 31,842 contracts, the largest single position in the entire options chain, approximately 15.7% higher than the pre-market price. This suggests that a significant number of traders had set their sights on the $260 level before the earnings report was released. The open interest for call options at $250 was 28,914 contracts, at $240 was 25,731 contracts, and at $230 was 22,619 contracts, displaying a step-like bullish pattern from low to high, extending all the way to 15,847 contracts for call options at $300approximately 33% higher than the pre-market price. Since the $260 call option has far exceeded the implied volatility range of the September 25 options chain, traders holding these contracts are evidently betting on a continuation of momentum rather than a slow drift post-earnings. For downside protection, the $200 put option with an open interest of 24,107 contracts became the largest bearish contract, about 11% lower than the pre-market price, and this position is viewed as a critical defense line where bullish logic may begin to collapse post-earnings. Further down, $195, $190, $185, and $180 strike prices form a tiered protective ladder, while the 18,847 contracts for $170 put options are used by traders as a hedge against extreme tail risks. The Sole Bearish Voice: Seaport Views "Sellout" as Limiting Upside Potential Amid the chorus of bullish sentiment, Seaport Research Partners analyst Jay Goldberg stands out as the only analyst on Wall Street maintaining a Sell rating. He stated in an interview after NVIDIA Corporations earnings report release that although the chip giants quarterly performance is very impressive, no one will care because the companys chips have sold out, and supply constraints mean there is almost no upside space this year. Goldberg pointed out that NVIDIA Corporation's reliance on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) is a constraint that cannot be relieved in the short term. He believes that NVIDIA Corporations chip capacity allocation has already been locked in for this year, saying, When your products are sold out, where do you find upside potential? This situation will not change within this year. He specifically mentioned that NVIDIA Corporation's dependence on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is a structural constraint that cannot be alleviated in the short term. He also noted that the acquisition of Groq by NVIDIA Corporation may increase production outside of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR next year, and revenue from software and new cloud business may also provide additional growth, but all of these will take time. Additionally, he highlighted competitive threats from AMD (AMD.US) Instinct chips, Alphabet Inc. Class C TPU, and self-developed chips from OpenAI and Anthropic. Nonetheless, he expects NVIDIA Corporation to maintain the largest market share.