Nvidia promises further growth after blockbuster quarter

Nvidia just reported a quarter that would make most Fortune 500 companies jealous of a single month. The GPU giant posted $96.2 billion in revenue for its fiscal second quarter of 2027, more than doubling the $46.7 billion it brought in during the same period a year ago. That’s a 106% year-over-year jump, and somehow, the company is telling investors the best is still ahead.

GAAP net income landed at $59.7 billion, up 126% from the prior year.

The data center engine keeps revving

The overwhelming majority of Nvidia’s revenue came from where you’d expect: data centers. That segment generated $89.0 billion, a 117% increase year over year. It now accounts for roughly 93% of total company revenue.

Nvidia disclosed that its partnership with Amazon Web Services has expanded to encompass an additional 2 million GPUs, a figure that illustrates the sheer scale of compute being deployed for AI workloads.

CEO Jensen Huang described the current moment as an “inflection point” for artificial intelligence. That phrase gets thrown around loosely in tech, but when it’s backed by triple-digit revenue growth and a customer commitment backlog exceeding $279 billion, the term carries a bit more weight.

Nvidia’s Blackwell Ultra platform is now actively deployed, and the company has begun shipping its next-generation Vera Rubin system.

Guidance that caught Wall Street off guard

The numbers that really turned heads came in the outlook section. Nvidia guided for approximately $108 billion in revenue for its fiscal third quarter, give or take 2%.

For fiscal year 2028, the company projected roughly 70% revenue growth. Wall Street analysts had been modeling something closer to 45%.

Gross margins remained healthy at 75.0% for the quarter on both a GAAP and non-GAAP basis. Nvidia expects a slight dip to around 74.0% next quarter, plus or minus 50 basis points.

Diluted earnings per share came in at $2.46 on a GAAP basis and $2.22 non-GAAP. Shares moved higher in after-hours trading following the report.

Supply constraints remain the one cloud

For all the triumphalism in the numbers, Nvidia isn’t operating without friction. Memory component shortages and broader supply chain constraints continue to limit how quickly the company can fulfill orders. The $279 billion backlog of customer commitments is both a testament to demand and a reminder that Nvidia literally cannot build chips fast enough.

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