According to intelligence sources, a research report indicates that NVIDIA's (NVDA.US) earnings demonstrate high industry prosperity, with tech giants continuing to increase computing power investments due to clear monetization pathways and optimistic capital expenditure guidance. NVIDIA stated that the future market to be developed is the "$3-4 trillion artificial intelligence infrastructure market." The firm believes that anchoring AI computing industry development growth has gradually become a secondary market asset allocation consensus, while the optical module industry chain, as overseas AI's "ticket asset," represents very scarce assets in A-shares and is expected to continue benefiting from the FOMO 2.0 era. Continued attention to investment opportunities in optical module leading companies is warranted.
Gf Securities Co.,Ltd.'s main viewpoints are as follows:
**Event** On August 27th Eastern Time, NVIDIA disclosed its FY26Q2 earnings report. NVIDIA achieved revenue of $46.7 billion in FY26Q2, up 56% year-over-year; net profit of $26.4 billion, up 60% year-over-year; EPS of $1.04.
**Revenue and Profit Continue High-Speed Growth, Network Business Benefits from High Demand for XDR IB Products** NVIDIA achieved revenue of $46.7 billion in FY26Q2, up 56% year-over-year; net profit of $26.4 billion, up 60% year-over-year; EPS of $1.04. NVIDIA provided positive guidance for next quarter, expecting FY26Q3 revenue of $54.0 billion ±2% (excluding potential H20 revenue); expected gross margin of 73.5% ±0.5pct, with full-year gross margin expected to remain in the mid-70s range.
For specific businesses, FY26Q2 data center business achieved revenue of $41.096 billion, up 5% quarter-over-quarter and 56% year-over-year, accounting for 88% of total revenue. Computing business revenue was $33.84 billion, up 50% year-over-year and down 1% quarter-over-quarter, mainly due to H20 series revenue declining $4 billion quarter-over-quarter; B series revenue increased 17% quarter-over-quarter, with H100/200 series also achieving quarter-over-quarter growth. Network revenue was $7.25 billion, up 98% year-over-year and 46% quarter-over-quarter, mainly benefiting from high quarter-over-quarter demand growth for XDR InfiniBand products.
**Blackwell Series Products Accelerate Volume Production, High-Performance Interconnect Products Have Broad Market Space**
Product side: (1) GB300 has achieved mass production with weekly production capacity of 1,000 cabinets, with NVIDIA expecting further ramp-up in FY26Q3; (2) Next-generation Rubin series chips have entered production, including Vera CPU, Rubin GPU, CX9 network cards, NVLink 144 switches, Ethernet switches, and silicon photonics chips, with NVIDIA expecting Rubin cabinets to achieve mass production next year; (3) For communication interconnect products, NVIDIA stated that investing in building high-performance interconnects will yield substantial returns, for example, a 1GW IDC is worth $50 billion, and improving interconnect efficiency by tens of percentage points would add $10-20 billion in actual benefits.
On August 21st, NVIDIA announced the launch of NVIDIA Spectrum-XGS Ethernet. This scale-across technology can combine multiple distributed data centers into gigawatt-scale AI superfactories. NVIDIA is committed to addressing geopolitical issues, with some H20 customers having obtained permits, and continues to advocate for the US government to approve Blackwell series sales in China.
**Risk Warning** Risk of AI application development falling short of expectations; Risk of local shortages in AI hardware; Risk of tightening overseas export controls; Risk of cloud vendor capital expenditure falling short of expectations.