TLDR
- Palantir’s 93% year-over-year commercial growth driven by AI platform demand signals strong AI adoption, benefiting Nvidia stock
- Major tech companies including Alphabet, Meta, and Amazon have increased their AI infrastructure spending budgets for 2025
- Nvidia’s new Blackwell Ultra GPUs offer up to 50 times better performance than H100 chips and began shipping in Q2 2025
- Wall Street expects Nvidia to report around $45 billion in Q2 revenue, representing 50% growth year-over-year
- Nvidia’s upcoming earnings report on August 27 could drive NVDA stock gains if the company meets or exceeds expectations
Nvidia stock (NVDA) gained fresh momentum this week as Palantir’s latest earnings report revealed accelerating artificial intelligence adoption. The data analytics company posted 93% year-over-year growth in its US commercial business, driven primarily by demand for its Artificial Intelligence Platform.
Palantir’s customer base expanded by 64% while contract values jumped over 200%. This AI growth demonstrates that artificial intelligence adoption is moving beyond tech giants into mainstream businesses across multiple sectors.
The AI expansion matters for Nvidia stock because each new artificial intelligence implementation requires powerful hardware. Nvidia controls 92% of the data center GPU market, positioning NVDA stock to capture this growing AI demand.
Recent AI models focus on “reasoning” rather than simple responses. These advanced artificial intelligence systems consume up to 1,000 times more computational resources than earlier models, according to Nvidia CEO Jensen Huang.
This increased AI demand drove Nvidia to develop its Blackwell and Blackwell Ultra GPU architectures. The GB300 chip offers up to 50 times better performance than the previous H100 model in certain configurations.
Nvidia began shipping Blackwell Ultra GPUs in the second half of 2025. The company’s fiscal Q2 2026 results should provide the first sales update for these new AI chips.
Tech Giants Increase AI Infrastructure Spending
Major cloud providers have increased their AI infrastructure spending budgets throughout 2025. Alphabet raised its capital expenditure forecast from $75 billion to $85 billion for the year.
Meta Platforms boosted the low end of its AI spending guidance from $64 billion to $66 billion. The social media company indicated it could spend up to $72 billion on infrastructure investments.
Amazon allocated $55.7 billion to capital expenditures in the first two quarters alone. The e-commerce giant’s full-year AI spending could exceed $118 billion based on current guidance.
Most of this capital flows toward AI data center infrastructure and GPU purchases. Nvidia stock stands to capture a large portion of this spending through its dominant market position.
The chipmaker’s revenue guidance suggests Q2 fiscal 2026 sales reached approximately $45 billion. This represents 50% growth compared to the same period last year.
Nvidia Stock August 27 Earnings Expectations
Wall Street expects Nvidia to report earnings of around $1 per share for Q2 fiscal 2026. This would mark a 47% increase from the prior year period for NVDA stock.
Analysts will focus closely on management’s guidance for Q3 fiscal 2026. Revenue projections of $52 billion or higher could drive additional Nvidia stock gains.
Nvidia’s data center segment likely accounted for roughly 90% of total revenue during the quarter. GPU sales within this segment drive the majority of the company’s AI growth.
NVDA stock trades at a forward price-to-earnings ratio of 43 based on fiscal 2026 estimates. This compares to the company’s current P/E ratio of 60.1.
Nvidia stock has gained 33% since the company’s last earnings report on May 28. The upcoming August 27 earnings report could provide another catalyst for further NVDA gains.
The company’s market capitalization recently reached $4.3 trillion, making it the world’s largest public company. This milestone reflects investor confidence in the AI revolution’s sustainability.
Nvidia stock has surged 1,100% since the beginning of 2023 when AI adoption began accelerating. The company’s financial results on August 27 will likely show continued strong demand for AI infrastructure and GPU chips.
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