Huda here means the faith that resides in the heart, and only Allah is able to create it in the heart of the servants. Allah said,
﴿إِنَّكَ لاَ تَهْدِى مَنْ أَحْبَبْتَ﴾
(Verily, you (O Muhammad ) guide not whom you like) (28:56),
﴿لَّيْسَ عَلَيْكَ هُدَاهُمْ﴾
(Not upon you (Muhammad ) is their guidance) (2:272),
﴿مَن يُضْلِلِ اللَّهُ فَلاَ هَادِيَ لَهُ﴾
(Whomsoever Allah sends astray, none can guide him) (7:186), and,
﴿مَن يَهْدِ اللَّهُ فَهُوَ الْمُهْتَدِ وَمَن يُضْلِلْ فَلَن تَجِدَ لَهُ وَلِيًّا مُّرْشِدًا﴾
(He whom Allah guides, he is the rightly guided; but he whom He sends astray, for him you will find no Wali (guiding friend) to lead him (to the right path)) (18:17).
Huda also means to explain the truth, give direction and lead to it. Allah, the Exalted, said,
﴿وَإِنَّكَ لَتَهْدِى إِلَى صِرَٰطٍ مُّسْتَقِيمٍ﴾
(And verily, you (O Muhammad ) are indeed guiding (mankind) to the straight path (i.e. Allah's religion of Islamic Monotheism)) (42: 52),
﴿إِنَّمَآ أَنتَ مُنذِرٌ وَلِكُلِّ قَوْمٍ هَادٍ﴾
(You are only a warner, and to every people there is a guide) (13:7), and,
﴿وَأَمَّا ثَمُودُ فَهَدَيْنَٰـهُمْ فَاسْتَحَبُّواْ الْعَمَى عَلَى الْهُدَى﴾
(And as for Thamud, We showed and made clear to them the path of truth (Islamic Monotheism) through Our Messenger (i.e. showed them the way of success), but they preferred blindness to guidance) (41:17).
testifying to this meaning.
Also, Allah said,
﴿وَهَدَيْنَٰـهُ النَّجْدَينِ ﴾
(And shown him the two ways (good and evil).) (90:10)
This is the view of the scholars who said that the two ways refer to the paths of righteousness and evil, which is also the correct explanation. And Allah knows best.