Nvidia(US:NVDA) SINOLINK SECURITIES·2025-08-28 08:39Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported FY26Q2 revenue of $46.743 billion, a year-on-year increase of 55.6% and a quarter-on-quarter increase of 6.1%. The GAAP gross margin was 72.4%, with a GAAP net profit of $26.422 billion [2]. - The data center business continues to grow, with FY26Q2 revenue reaching $41.096 billion, up 56.4% year-on-year and 5.1% quarter-on-quarter. Network revenue surged by 98% year-on-year, driven by cabinet shipments and the Spectrum-X platform [3]. - Non-data center businesses also showed strong growth, with gaming, professional visualization, and automotive revenues of $4.287 billion, $601 million, and $586 million, respectively, reflecting year-on-year increases of 48.9%, 32.4%, and 69.4% [4]. - The company is expected to become a significant AI hardware platform, with downstream cloud vendors driving growth through model iteration and increased inference demand. Sovereign AI demand is anticipated to contribute additional revenue [5]. Summary by Sections Performance Review - FY26Q2 revenue was $46.743 billion, with a GAAP net profit of $26.422 billion and a GAAP gross margin of 72.4% [2]. Business Analysis - Data center revenue for FY26Q2 was $41.096 billion, with a notable increase in network revenue due to product iterations and new customer adoption [3]. - Non-data center revenue segments, including gaming and automotive, also experienced significant growth [4]. Profit Forecast and Valuation - Projected GAAP net profits for FY26, FY27, and FY28 are $111.15 billion, $164.14 billion, and $188.22 billion, respectively, supporting the "Buy" rating [5].