Nvidia earnings effect you even if you're not directly invested.

You are also likely invested in AI-related debt, whether that be through mutual funds, pension plans or bond portfolios, the everyday person almost has some investment in the debt that has funded roughly $3 trillion in AI-infrastructure buildout.

The Q2 earnings call was all about the company reassuring the demand for AI products is strong. And in some ways, with the U.S. GDP growth being highly reliant on AI growth, Nvidia's results can serve as a leading indicator for future growth.

"AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue," said CEO Jensen Huang. "And demand is accelerating. The AI infrastructure buildout is at full steam."

And with Capex expected to reach nearly 1.3 trillion by 2027 by the top hyperscalers, that demand is not running dry, according to the company in their Q2 earnings call.

"We are seeing demand acceleration even at our scale," said CFO Colette Kress.

Nvidia reported record revenues of $96.2 billion, up 106% from a year ago. Notably, Data Center Revenue grew $89.0 billion, growing 117% from the previous year.

The company expects to grow revenue by 70% in fiscal 2028, a figure management described as supply constrained. "We have supply for 70% growth," Huang said. "Our demand is much higher than that."

Ironically, the demand for Nvidia's products has also caused increased costs in memory, a crucial component in Nvidia's production. The company cites tighter memory supply as the largest drag on its gross margins, and were quick to reassure investors, citing that the same demand that drives memory prices also drives their revenues. Kress said she expects memory supply to remain a bottleneck at least through the end of fiscal year 2028.

The company also assured investors that they are the compute power behind all major open and closed source AI models, referencing the companies behind the world's largest and newest AI models, including Kimi, Claude, Grok, Gemini, and ChatGPT.

"Rising adoption of agentic AI is driving acceleration in datacenter CPUs," Huang said, pointing to Vera, Nvidia's first CPU built for AI agents.

Data center revenue jumped 117%, with hyperscale revenue up 101.5% to $48.7 billion, sustained by the sustained demand for AI and AI-related solutions.

Nvidia is partnering with AWS, with Amazon adopting Nvidia's AI stack to power their warehouse robots.

The markets watched the earnings closely. The stock initially slipped after the release, then climbed roughly 5% in after-hours trading as the call went on, finishing up around 4.4%. Markets responded positively to the news after hours, with the S&P 500 up roughly 60 basis points in extended trading, using SPY as a proxy.