AMZN

Earnings estimates for Corning Incorporated GLW for fiscal 2026 and fiscal 2027 have moved up 2.51% to $3.27 and 1.66% to $4.28, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiment about the stock’s growth potential. Image Source: Zacks Investment Research Optical Communications has emerged as Corning’s major growth engine. In the second quarter, the segment’s sales increased 32% year over year to $2.07 billion, while segment net income jumped 77% to $438 million. The uptick is backed by rapid AI infrastructure buildout.Corning is expanding collaboration with some of the world’s largest tech companies. It has inked a multiyear, multibillion-dollar agreement with Amazon. Per the deal, Corning will provide optical fiber, cable and connectivity products for Amazon’s expanding U.S. data-center infrastructure. The company also announced a long-term partnership with NVIDIA to expand U.S.-based optical connectivity manufacturing capacity by 10 times and increase domestic fiber production capacity by more than 50%.Corning’s Glass Innovations business is benefiting from its premium positioning and product innovation. The company expects Gorilla Glass sales to outperform the broader handheld market despite pressure from higher memory prices. TV manufacturers and panel makers are increasingly shifting towards larger and higher-priced televisions. This is likely to create a favorable opportunity for Corning’s Display Business.Corning continues to enhance its financial profile under the Springboard initiative. The company has raised the ambition of its Springboard strategy, targeting an annualized sales run rate of $20 billion by the end of 2026, $30 billion by the end of 2028 and $40 billion by the end of 2030. Management expects sales to witness a 19% CAGR from the fourth quarter of 2026 through the fourth quarter of 2030, with earnings growing faster than sales. Demand softness in the handheld device market remains one of the key near-term challenges for the company. Management expects higher memory prices to push smartphone industry unit volumes down by a mid-teens percentage in 2026. Despite the company’s expectation of outperforming the market, demand for Gorilla Glass will likely be impacted by lower handset volume.Corning maintains a sizeable presence in China, which exposes the company to geopolitical tensions and tariff- related uncertainty. The Display and consumer electronics businesses remain dependent on Chinese panel makers and manufacturing ecosystems. Escalating trade restrictions, tariff increases or supply-chain disruptions between the United States and China could adversely affect operating margins, production efficiency and customer demand. Stiff competition can limit growth potential. Competition from companies such as Amphenol APH and Ciena Corporation CIEN may increase pressure on pricing.Corning's growing AI infrastructure exposure enhances growth but increases reliance on a small number of large customers. In second-quarter 2026, contract liabilities totaled $2.7B and included a $1B customer deposit tied to a long-term AI infrastructure supply agreement, highlighting concentration risk even as it supports near-term visibility. Corning shares have gained 104% in the past year compared with the communications components industry’s growth of 157.1%. The stock has outperformed the S&P 500 indexduring this period. Image Source: Zacks Investment Research It has underperformed its competitor, Ciena, but outperformed Amphenol. Ciena has gained 179.1%, while Amphenol has declined 28.4%. From a valuation standpoint, GLW is currently trading at a premium compared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 36.51 forward 12-month earnings, higher than 35.16 for the industry. Image Source: Zacks Investment Research Growing exposure to AI infrastructure and expanding optical content per AI system are major growth drivers for Corning. Focus on product diversification and exposure to various markets such as solar, automotive and display boost resiliency in the business model. Strong demand for Gorilla Glass is a positive. However, weakness in the smartphone market, high customer concentration risks and growing geopolitical volatility remain major concerns. With a Zacks Rank #3 (Hold), Corning seems to offer a balanced investment outlook, suggesting that investors may want to exercise caution when considering the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Corning Incorporated (GLW) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter 2026 Results: Gross Margin of 90.9% and Category Leadership HERZLIYA, Israel and CALGARY, Alberta, Aug. 31, 2026 /PRNewswire/ -- Innocan Pharma Corporation (CSE: INNO) (OTCQB: INNPF) ("Innocan" or the "Company"), today reported today 2026 financial consolidated results for the six and three months ended June 30, 2026. Innocan's consumer wellness subsidiary. B.I. Sky Global Ltd. ("BI Sky"), successfully maintained a gross margin of 90.9% during the period, reflecting the strength of its product portfolio, direct-to-consumer business model and disciplined approach to operations. VALITIC™ Maintains Leading Amazon Best Seller Position VALITIC™, the flagship skincare brand of B.I. Sky, continues to maintain a leading positions across key product categories on Amazon, including achieving the leading ranking in its category. This performance reflects continued consumer demand and the growing strength of the VALITIC™ brand. VALITIC™ continues to hold Amazon's "Best Seller" badge, recognizing its position as the Top best-selling product in its specific category. The badge is based on actual sales performance rather than customer ratings and is updated hourly according to sales volume, highlighting the brand's strong and sustained consumer demand. VALITIC™ also holds Amazon's Choice recognition, reflecting Amazon's algorithmic recommendation based on factors including customer ratings, price competitiveness, availability, delivery performance and return rates. "We are proud of the strength of BI Sky's business and the consumer trust built around our products," said Iris Bincovich, CEO of Innocan Pharma Corporation. The Company's results were also impacted by the Trump administration's frequently changing policies regarding customs duties and tariffs, which created significant uncertainty that led to a decline in sales in the period. However, the Company continues to maintain a strong balance sheet and solid liquidity position, with approximately $ US 6.4 million in cash and cash equivalents and $US10.37 million in total assets as of June 30, 2026, providing a solid consolidated financial foundation to support its ongoing operations and growth initiatives. Roni Kamhi, CEO of B.I. Sky and COO of Innocan Pharma said "Building on Our Top Amazon Ranking to Expand Sales Across Multiple Channels B.I. Sky is advancing initiatives to diversify and expand its sales channels, building on its leading position on Amazon while broadening its market reach across multiple platforms. Amazon will continue to represent an important sales channel. At the same time, the Company is pursuing additional growth opportunities, including expanding its relationships with major U.S. retail and distribution networks and increasing its presence across major online retail platforms. In parallel, B.I. Sky has begun selling through its own direct-to-consumer (DTC) website, which is already operational and provides an additional platform to build direct relationships with consumers, strengthen brand engagement, and expand the reach of the Valitic® brand.I believe that its established brands, product portfolio and existing customer base provide a strong foundation for further growth. By leveraging these strengths across a broader range of sales channels, the Company aims to increase market reach, create additional revenue opportunities and strengthen its commercial performance. I expect these initiatives to support revenue growth and expand the reach and visibility of its brands over the coming year. "With a greater focus on sales execution, broader distribution and continued investment in our core strengths, we believe B.I. Sky is well positioned to strengthen its commercial performance and create long-term value for our shareholders," concluded Mr. Kamhi. FISCAL 2026 THREE MONTHS SELECT FINANCIAL RESULTS (unaudited) Consolidated Revenues totaled US$5.25 million for the three months ended June 30, 2026, On a year-over-year basis, revenues decreased 25.06% compared to the same period in the prior year. Gross Profit totaled US$4.769 million representing a decrease of 23.0% on a reported basis for the three months ended June 30, 2026. Gross Margin remained high at 90.8% despite the decline in revenues in three months ended June 30, 2026. Operating loss totaled US$0.508 million, representing an increase of 228.3% on a reported basis for the three months ended June 30, 2026. The Company's full set of unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2026, and accompanying management's discussion and analysis can be accessed by visiting the Company's website at www.innocanpharma.com and its SEDAR+ profile at www.sedarplus.ca. About Innocan: Innocan is an innovator in the pharmaceuticals and wellness sectors. In the wellness sector, Innocan develops and markets a wide portfolio of high-performance self-care and beauty products to promote a healthier lifestyle. Under this segment Innocan carries on business through its 60% owned subsidiary, BI Sky Global Ltd., which focuses on advanced, targeted online sales. www.innocanpharma.com Contact Information: For Innocan Pharma Corporation:Iris Bincovich, CEO+1 [email protected] NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. Caution Regarding Forward-Looking Information Certain information set forth in this news release, including, without limitation, consumer growth of the Valitic brand, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan's control. The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of production and distribution arrangements. Forward-looking information is subject to various risks and uncertainties that could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: global and local (national) economic, political, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and potential disruption of relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import/export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner). The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. A comprehensive discussion of other risks that impact Innocan can be found in Innocan's public reports and filings which are available under Innocan's profile at www.sedarplus.ca. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. View original content:https://www.prnewswire.com/news-releases/innocan-pharma-announces-second-quarter-fiscal-year-2026-results-with-revenue-of-us5-25m-cad-7-3m-302865164.html View original content: http://www.newswire.ca/en/releases/archive/August2026/31/c5299.html

InterDigital, Inc. IDCC reported better-than-expected second-quarter 2026 results, driven by healthy licensing momentum and contributions from its new Streaming and Cloud Services business. The company generated second-quarter revenues of $260.2 million, which declined 13% year over year but surpassed the Zacks Consensus Estimate. Non-GAAP earnings of $4.62 per share also comfortably beat expectations. The year-over-year decline largely reflected lower catch-up revenues compared with the prior-year period.Annualized recurring revenue increased 13% year over year to a record $625.7 million, highlighting strength in IDCC's underlying licensing portfolio. The increasing recurring revenue base provides greater revenue visibility and should help support continued investments in wireless, video and artificial intelligence (AI) technologies. InterDigital's recently signed agreement with Amazon.com, Inc. AMZN represents a significant step in expanding its licensing business beyond smartphones. The agreement covers Amazon services and devices, including Prime Video, with final financial terms to be established through binding arbitration.The deal helped Streaming and Cloud Services generate $110 million in second-quarter revenues against no revenues in the year-ago quarter. This emerging business could become an important growth driver as InterDigital looks to monetize its intellectual property across streaming platforms, cloud services, consumer electronics, IoT devices and automobiles. Such diversification should gradually reduce the company's dependence on traditional smartphone licensing opportunities.IDCC also remains well-positioned to capitalize on increasing investments in 5G, connected devices and next-generation video technologies. Its extensive patent portfolio and continued research investments provide a foundation for signing additional licensing agreements. InterDigital has collaborated with major academic institutions worldwide to expedite 6G research as it aims to strengthen its position in the next generation of wireless communications. Data traffic demand is growing exponentially worldwide and 5G networks are required to support this high-capacity end-user throughput. The MIMO (Multiple-Input, Multiple-Output) technology leverages an active antenna system that consists of multiple antenna elements to augment the performance, reliability and overall efficiency of wireless communication systems. The 6G technology, which relies on Massive MIMO, will enable significantly higher data rates than its predecessors, leading to improved spectrum efficiency. The company is actively contributing to the development of 6G standards, with research spanning integrated sensing and communication, sub-terahertz technologies, AI-native network architecture and post-quantum security. Its work also builds on advancements in 5G-Advanced, including massive MIMO, non-terrestrial networks, extended reality and AI/ML-driven network optimization.These initiatives are particularly important given InterDigital's licensing-focused business model. By developing technologies that could become essential to future wireless standards, the company is seeking to expand its portfolio of standard-essential patents and create additional licensing opportunities over the long term. Although commercial 6G deployment remains several years away, InterDigital's continued investment in next-generation wireless research could strengthen its technological leadership and support future royalty growth. InterDigital has surged 23.2% in the past year compared with the industry’s growth of 28.2%. It has outperformed peers like Aviat Networks, Inc. AVNW and Comtech Telecommunications Corp. CMTL. While Aviat has declined 6.6%, Comtech is down 10.3% over this period. One-Year IDCC Stock Price Performance Image Source: Zacks Investment Research Following strong quarterly results, InterDigital raised its 2026 revenue outlook to $775-$845 million from the previous range of $675-$775 million. Adjusted EBITDA is now projected between $469 million and $529 million, up from the prior forecast of $381-$477 million.The company also increased its non-GAAP earnings guidance to $10.85-$12.81 per share from $8.74-$11.84. InterDigital's healthy financial position provides additional flexibility. The company exited June with approximately $1.11 billion in cash, cash equivalents and short-term investments. Its asset-light licensing model and strong liquidity should help fund research initiatives while supporting shareholder returns. InterDigital's solid second-quarter performance, record recurring revenues, Amazon deal and raised guidance paint an encouraging picture. Expansion into Streaming and Cloud Services also broadens the company's long-term addressable market. Investors seeking exposure to the expanding wireless, streaming and connected-device ecosystems may consider buying IDCC stock following its solid second-quarter performance. InterDigital sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The earnings season for Magnificent 7 stocks for the current reporting season is over after Nvidia (NVDA) reported its fiscal Q2 2027 earnings on Aug. 26. While the earnings season began on a sour note after Tesla (TSLA) plunged following its Q2 confessional, it ended on a buoyant note with Nvidia rising 8.7% and adding over $400 billion to its market cap. Microsoft (MSFT) and Amazon (AMZN) were the only Mag 7 names to see double-digit gains after their June quarter earnings. However, while Microsoft has continued to rip higher and now trades above $500, Amazon has pared some of the post-earnings gains. Let's examine why AMZN has looked weak in recent weeks and analyze the stock's forecast. Why Options Traders Are Betting That Marvell Technology Stock Could Soon Hit $300 Sandisk Stock Could Nearly Double to $3,000, According to Wall Street Nancy Pelosi Buys Intel. What Comes Next and If You Should Buy INTC Stock Too. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. To begin, I found AMZN’s sharp rally after Q2 earnings to be a bit of an overreaction. While the report was encouraging, particularly the 37% year-over-year (YoY) revenue growth that Amazon Web Services (AWS) delivered, the report wasn’t as stellar as Microsoft's. Amazon’s Q3 guidance also trailed estimates, and the company raised its 2026 capex budget by 10% to $220 billion. On a similar note, Amazon recently said that it would add another 2 million Nvidia GPUs between 2027 and 2028. While that would be music to the ears of Nvidia investors, it also implies that Amazon’s burgeoning capex—already the highest among all tech companies—is not coming down anytime soon. Tech companies, including Amazon, are posting negative free cash flows and are raising capital to build the war chest for AI infrastructure buildout even as investors are increasingly wary of the spending spree. There are also lingering concerns over Amazon’s U.S. e-commerce business after Walmart (WMT) spooked markets with its recent quarterly earnings. It was not a one-off, and retailers across the board have been cautioning about consumer spending, particularly among low- and middle-income households as higher gas prices start pinching monthly budgets. After Amazon’s Q2 earnings, several brokerages raised the stock’s target price. Looking at some of the significant hikes, Raymond James raised its target price from $280 to $390, while Goldman Sachs raised its target price from $335 to $375. Last week, Rosenblatt Securities initiated coverage on Amazon with a “Buy” rating and a target price of $335. The overall analyst sentiment remains bullish, and AMZN stock has a “Strong Buy” consensus rating from the 57 analysts tracked by Barchart. Forty-nine give it a “Strong Buy” rating, six rate it as a “Moderate Buy” while two rate it as a “Hold.” AMZN is the highest-rated Mag 7 stock, while TSLA ranks lowest with a consensus rating of “Moderate Buy.” AMZN stock has a mean target price of $326.49, which is 23% higher than current levels. While concerns over AI capex and retail spending slowdown in the U.S. are for real, I believe investors should stay put in Amazon. The company has built an enviable ecosystem, which would only get better with AI. Notably, not only has AI helped put AWS’s growth on a higher pedestal, but the company is also using the technology to improve customer experience on its e-commerce platform. It is also using AI in logistics while helping advertisers make their ads more engaging and, in the process, more effective. Prime is another key part of Amazon’s flywheel, as it not only brings in subscription and ad revenues, but these customers also tend to order more frequently on its e-commerce platform. The company has still just about scratched the surface in initiatives like grocery, pharmacy, and business-to-business (B2B), as well as the low-cost platform Haul, which would help it take on the likes of Temu and Shein. AMZN stock trades at a forward price-to-earnings (P/E) of 35.5x, which is not exuberant for a company whose earnings are expected to rise 32% next year. Concerns about tech companies overinvesting in AI are not unfounded, nor are the circular deals in which they are investing downstream in their customers (cloud in Amazon’s case). However, I believe Amazon’s risk-reward is reasonably attractive here, and I see the recent weakness as an opportunity to add shares. On the date of publication, Mohit Oberoi had a position in: AMZN, TSLA, MSFT, NVDA. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Workday, Inc. WDAY reported second-quarter fiscal 2027 non-GAAP earnings of $2.75 per share, which increased 24.4% from $2.21 a year ago. The bottom line beat the Zacks Consensus Estimate of $2.62 by 4.96%. Revenues rose 12.8% to $2.65 billion, beating the consensus estimate of $2.63 billion by 0.57%.Subscription growth, stronger margins and rising AI adoption supported the quarter. AI products drove more than $100 million of new annual contract value, representing more than 25% of total new Annual Contract Value (ACV). 12-month subscription revenue backlog increased 14.2% to $9.03 billion. Subscription services revenues rose 13.9% year over year to $2.47 billion, accounting for about 93% of total revenues. Roughly 60% of the increase came from expansion among existing customers, with the balance from customers added after the start of the comparable prior-year period. Professional services revenues slipped 1% to $178 million as Workday continued to leverage service partners. U.S. revenues increased 12% to $1.97 billion, while international revenues climbed 17% to $682 million. Total subscription revenue backlog grew 8% to $27.4 billion, and gross revenue retention remained about 97%. Workday, Inc. price-consensus-eps-surprise-chart | Workday, Inc. Quote Agentic AI annual recurring revenues approached $600 million, rising more than 200% year over year and 20% sequentially. More than 5,500 customers were using at least one organic Workday agent, up more than 35% from the prior quarter. More than half of net new wins included one or more AI solutions. AI activity was visible across products. More than 30 million candidates interacted with the Talent Acquisition Agent, which scheduled more than eight million interviews. 170 customers had purchased Adaptive Decision Intelligence, and more than 200 customers had signed up for Flex Credits. Total costs and expenses increased 11% to $2.34 billion. The rise included $126 million of higher employee-related expenses, $43 million of additional facilities and IT costs, and a $32 million increase in third-party hosted infrastructure spending. During the quarter, non-GAAP net income increased 13.2% to $677 million. GAAP operating income advanced 26% to $313 million, with margin improving to 11.8% from 10.6%. Non-GAAP operating income rose 21% to $824 million, while margin expanded to 31.1% from 29%. Workday attributed the improvement to revenue growth outpacing headcount growth and moderated operating expenses. GAAP results also included a $374 million nonrecurring tax benefit. Operating cash flow totaled $520 million, down from $616 million a year earlier, while free cash flow declined to $460 million from $588 million. During the first six months of 2026, the company generated $1.22 billion in cash compared with $1.07 billion in the year-ago period. Management attributed the year-over-year decline to the payroll calendar, which included an additional payroll run in the quarter. As of July 31, 2026, Workday had cash, cash equivalents and marketable securities of $3.4 billion with long-term debt of $1.99 billion. The company repurchased $1.3 billion of shares during the quarter, completing its $5 billion repurchase plan six months ahead of target. The board subsequently authorized a new open-ended $4 billion share repurchase program. For the third quarter of fiscal 2027, Workday expects total revenues of $2.69 billion, up 11%, and subscription revenues of $2.52 billion, up 12%. Management projects 12-month subscription revenue backlog growth of 11-12% and a non-GAAP operating margin of 30%. For fiscal 2027, total revenues are projected at $10.65-$10.66 billion, up 12%, while subscription revenues are forecast at $9.94-$9.95 billion, up 13%. Workday raised its non-GAAP operating margin outlook to 31%. It maintained operating cash flow guidance of $3.45 billion and expects $3.18 billion of free cash flow, up 15%. Management's current fiscal 2028 target calls for subscription revenue growth of about 11%, consistent with the expected second-half fiscal 2027 growth rate. Potential upside could come from Sana Enterprise, Workday Extend with Data Cloud and AI agents, all of which management said are seeing strong early demand. Workday also expects its non-GAAP operating margin to expand by at least two percentage points in fiscal 2028. The company is prioritizing adoption before full monetization of consumption-based AI products, with management expecting AI to become a more significant contributor to incremental annual recurring revenues from fiscal 2028 and beyond. Workday currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Silicon Motion Technology Corporation SIMO sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 14.08%. It is benefiting from growing demand for NAND flash storage solutions driven by AI, data centers, PCs, smartphones and automotive applications. Its focus on advanced controller technologies, PCIe Gen5 solutions and expanding embedded storage offerings is expected to support long-term growth and strengthen its position in the storage semiconductor market.Texas Instruments Incorporated TXN carries a Zacks Rank #2 at present. It delivered an earnings surprise of 12.04% in the last reported quarter. The company is experiencing strong demand for analog and embedded processing solutions across industrial, automotive, communications and personal electronics markets. Its focus on product innovation, manufacturing capacity expansion and embedded processing technologies is likely to drive long-term growth.Amazon.com, Inc. AMZN carries a Zacks Rank #2 at present. It delivered an earnings surprise of 2.73% in the last reported quarter.Amazon continues to gain from strong demand for e-commerce, cloud computing, and digital advertising services, supported by the growing adoption of AI. Its expanding Amazon Web Services business, investments in generative AI and cloud infrastructure, and growing fulfillment network support sustained growth and strengthen its competitive position. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Workday, Inc. (WDAY) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Nvidia (NVDA) has done it again, delivering one of the most remarkable quarterly earnings reports I can recall. Second-quarter revenue surged 106% year-over-year to $96.2 billion, with gross margins of roughly 75% and net income of $59.7 billion. Nvidia also returned $25 billion to shareholders during the quarter, while growth expectations for the coming year moved sharply higher. The numbers themselves are extraordinary. But what makes this quarter historic is not simply the growth rate. It is the combination of growth and scale. There have been other periods when enormous companies posted comparable growth, but nearly all came with important caveats. Oil majors roughly doubled nominal revenue during the 1970s, but much of that was driven by commodity prices and ultimately reversed. Pfizer nearly doubled from a $42 billion revenue base during the pandemic, but that was largely a one-time vaccine windfall. Amazon added $106 billion in revenue in 2020, but did so at a fraction of Nvidia’s profitability. Nvidia is now approaching a $400 billion annual revenue run rate, equivalent to roughly 1.3% of US GDP. There is historical precedent for an individual company reaching that kind of economic scale, General Motors approached 3% of GDP in the 1950s, but it took GM 50 years to get there. And that gets to the larger question surrounding the company and the AI boom. The best historical comparison for Nvidia may not be another fast-growing technology company. It may instead be the dominant capital-goods suppliers behind previous investment booms: locomotive and rail-equipment manufacturers in the nineteenth century, telecom equipment vendors during the late 1990s or the suppliers behind other massive infrastructure buildouts. That distinction matters. Nvidia's revenue ultimately depends on the capital-spending decisions of a relatively concentrated group of enormous customers. When spending is accelerating, the economics can be spectacular. But if those customers suddenly pull back, growth can slow very quickly. Jensen Huang clearly understands that this is the central question facing Nvidia. That is why so much of the earnings call focused not simply on demand for GPUs, but on the economics customers are generating from them. “Its tokens are productive and profitable. Now, compute is revenue.” That claim is enormously important because it gets directly at the biggest concern surrounding the AI boom: Are companies actually making money on all of this infrastructure? During the telecom bubble, enormous amounts of fiber were laid in anticipation of future demand, only for much of it to sit unused for years. If AI infrastructure were following the same path, Nvidia's extraordinary growth would look considerably more vulnerable. So far, however, the evidence increasingly suggests otherwise. Dylan Patel of SemiAnalysis estimates that compute can rent for roughly $13 million per megawatt, while leading AI labs can generate as much as $50 million per megawatt in revenue from that infrastructure. Just as importantly, Patel notes that much of today's compute capacity is contracted before it is even built, which is close to the opposite of a speculative overbuild. Only a year ago, many AI companies were losing money on every token they served. Today, inference economics have improved substantially, utilization remains extremely high and the largest AI companies continue to demand more compute than the industry can readily provide. That does not mean the AI boom is without risk. If anything, the constraint may increasingly shift from demand to financing. Patel estimates the broader AI infrastructure buildout could exceed $11 trillion through 2029, with trillions potentially requiring outside credit. At some point, the sheer scale of that borrowing could push capital costs higher and slow the pace of investment. But that is a very different concern from the idea that AI infrastructure is being built without customers or economic value behind it. For now, the evidence continues to suggest that the GPUs Nvidia is selling are being heavily utilized, generating revenue for their owners and increasingly producing attractive economics. That makes today's AI buildout look considerably different from the dark fiber of the dot-com era, and gives Nvidia's extraordinary growth much stronger fundamental backing. Perhaps the most remarkable part of the Nvidia story is that, despite this growth, the valuation is not particularly extreme. NVDA currently trades around 23.5x forward earnings and carries a Zacks Rank #2 (Buy). Following a quarter like this, I would also expect analysts to continue raising earnings estimates, potentially providing another tailwind for the Zacks Rank. The technical setup is equally encouraging. NVDA shares have spent much of the last year moving through two major consolidations. As shown in the chart, the stock is once again pressing against resistance near its previous highs and appears to be attempting another breakout. With Nvidia now providing further confirmation of both the extraordinary demand for its GPUs and the profitability being generated by AI compute, a successful breakout from this consolidation could mark the beginning of another meaningful advance. Image Source: TradingView There are still legitimate risks, as there always are. Nvidia depends heavily on an extraordinary capital-spending cycle among a relatively small number of customers. Financing requirements are becoming enormous, memory costs could pressure margins and eventually the economics of the AI buildout will have to justify trillions of dollars in investment. But the evidence available today continues to move in Nvidia's favor. Demand remains exceptional, utilization is high and AI infrastructure increasingly appears capable of producing attractive economics for its owners. Nvidia's growth remains almost without historical precedent, and yet the stock trades at a valuation that looks surprisingly reasonable relative to that growth. The AI investment cycle will not continue at this pace forever. No capital-spending boom does. But Nvidia's latest quarter offers little evidence that the cycle is approaching its end. For now, it remains difficult to make a compelling case against owning NVDA. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the Q2 sales beat to tangible progress in the 'Consumer First Formula,' specifically citing a return to digital growth and accelerated expanded distribution through Amazon and Ulta. The company is shifting from seasonal collections to enduring franchises, exemplified by the Fruit Fusion launch which exceeded expectations and achieved higher average unit retail (AUR) than core assortments. Strategic portfolio discipline led to the decision to exit the Home Care category (laundry and kitchen), as it represents less than 1% of sales and creates disproportionate operational complexity. Digital performance improved 4 percentage points sequentially, driven by enhanced storytelling, personalization, and a lower free shipping threshold of $50. Management noted that while underlying business remains pressured by store traffic, the brand is gaining cultural relevance through its first major celebrity partnership and expanded creator network. The company intentionally entered the June semiannual sale with lower clearance inventory to protect brand health, which created a one-point headwind to Q2 sales but improved overall inventory quality. Full-year guidance was narrowed by raising the low end, assuming current macro pressures persist while allowing the agile model to chase potential upside. Management reaffirmed 2026 as an investment year, with a strategic 'North Star' goal of returning to sustainable revenue growth in 2027. The company plans to reinvest $35 million of tariff refund benefits into marketing during the second half, with 70% allocated to Q3 to build momentum for the holiday season. Future innovation will focus on 'Everyday Luxuries' and modernizing icons like 'A Thousand Wishes' to recruit new consumers while maintaining core customer loyalty. Guidance assumes a flat promotional environment in the second half, as management believes the business cannot be 'promoted back to health' and must rely on product and brand strength. Q2 results included an $80 million benefit from tariff refunds, which significantly boosted adjusted earnings per share and merchandise margin. Management is monitoring potential retaliatory tariffs in Canada, where approximately 3% of cost of goods is produced, and has factored $30 million of forward pressure into guidance. The 'Fuel for Growth' program is expected to exceed targets by $25 million, totaling $200 million in savings to fund transformation initiatives. The company executed an early partial redemption of $250 million in 2029 bonds to reduce interest expense and optimize the balance sheet. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed confidence in digital growth sustainability due to improvements in new and reactivated customer metrics, not just the shipping threshold change. To address store traffic, the company will test 'lease line disruption' and eventing in hundreds of doors before potential fleet-wide rollouts. Data to date shows no observed cannibalization of owned stores or websites; Amazon is viewed as a convenience play while Ulta serves trial and discovery. Amazon sales more than tripled sequentially, attracting younger and more affluent consumers with higher AUR than owned channels. The decline in store sales was partially due to a deliberate reduction in distressed inventory, as the company aims to buy seasonal business more accurately. Management clarified that while promotions remain a key excitement driver, they will not use incremental discounting to force top-line growth.