NVIDIA Q2 Earnings Call Highlights

Record growth continued: NVIDIA reported fiscal Q2 revenue of $96 billion, more than double the prior year, with data center revenue reaching $89 billion. The company forecast $108 billion in third-quarter revenue and expects approximately 70% fiscal 2028 growth, constrained by supply. AI infrastructure demand is broadening: NVIDIA’s Vera Rubin platform began production shipments and is expected to represent about 20% of third-quarter data center revenue. AWS also plans to deploy an additional 2 million NVIDIA GPUs, while enterprise, sovereign AI and NeoCloud demand is growing rapidly. Margins and China remain challenges: Gross margins are expected to decline to 71%–72% in the fourth quarter because of rising memory costs before stabilizing in fiscal 2028. NVIDIA’s outlook assumes no China data center compute revenue amid geopolitical uncertainty, while the company returned a record $26 billion to shareholders.

NVIDIA NASDAQ: NVDA reported record second-quarter results for fiscal 2027, with revenue more than doubling from a year earlier to $96 billion, as demand for artificial intelligence infrastructure continued to expand across hyperscalers, cloud providers, enterprises and sovereign customers. Chief Financial Officer Colette Kress said the company expects revenue to grow by approximately 70% in fiscal 2028, though she characterized that outlook as supply-constrained. NVIDIA forecast third-quarter revenue of $108 billion, plus or minus 2%.

Chief Financial Officer Colette Kress said the company expects revenue to grow by approximately 70% in fiscal 2028, though she characterized that outlook as supply-constrained. NVIDIA forecast third-quarter revenue of $108 billion, plus or minus 2%.

Data center revenue rose 18% sequentially to $89 billion in the second quarter. Revenue from hyperscale customers was $49 billion, up 13% from the prior quarter, driven by demand for Blackwell products. Revenue in NVIDIA’s ACIE category, which includes NeoCloud, industrial and enterprise customers, rose 25% sequentially and 138% year over year to $40 billion.

Kress said NVIDIA Compute was “fully utilized across every cloud we serve.” She also said NeoCloud partners using NVIDIA’s DSX reference designs are expected to exit the year with 8 gigawatts of installed capacity, compared with roughly 3 gigawatts at the end of 2025. NVIDIA announced an expanded partnership with Amazon Web Services under which AWS plans to deploy an additional 2 million NVIDIA GPUs beginning in the current quarter through the second quarter of fiscal 2029. The deployment will include Vera CPUs, some integrated with Rubin products and some deployed as standalone processors, according to Kress. The company began production shipments of its Vera Rubin platform earlier in August and said it had received purchase orders from every major hyperscaler, AI cloud provider and system original equipment manufacturer. Kress said NVIDIA expects Vera Rubin to be its fastest product ramp to date and expects the platform to account for about 20% of data center revenue in the third quarter. NVIDIA’s networking revenue also reached a record, increasing 18% sequentially. Spectrum-X Ethernet revenue grew 2.6 times from a year earlier, Kress said. The company also said it is in full production of its Vera CPU and expects CPU revenue to more than double in fiscal 2028, based on customer demand and its improving supply outlook.

CEO Jensen Huang said the company’s outlook reflects both ...