Nvidia revenue surges to $96.2 billion as earnings call begins
Key Takeaways
- •Nvidia’s fiscal second-quarter 2027 revenue rose to $96.2 billion, above the roughly $92.2 billion consensus estimate.
- •The data center segment generated $89 billion and accounted for about 92% of total revenue.
- •GAAP net income was $59.7 billion, and non-GAAP earnings per share of $2.22 exceeded expectations.
- •Nvidia projected third-quarter revenue of $108 billion, plus or minus 2%, which is above analyst forecasts.
- •Chief Financial Officer Colette Kress said production capacity could constrain the company’s ability to meet demand.
Nvidia reported $96.2 billion in revenue for its fiscal second quarter of 2027, a 106% increase from the same period a year earlier and an 18% rise from the previous quarter.
Wall Street had expected about $92.2 billion, putting Nvidia ahead of estimates by roughly $4 billion.
Stock reaction and quarterly results
Nvidia shares fell about 1.6% in regular trading on August 26 ahead of the earnings release, a pattern that has become familiar for large-cap technology companies before results are announced. After the numbers were released, the stock reversed course in after-hours trading.
The company’s data center business, which now accounts for about 92% of total revenue, generated $89 billion in the quarter, up 117% year over year. That concentration matters because Nvidia’s results and outlook are increasingly being read as a barometer for AI infrastructure demand more broadly, rather than just for a single chip maker.
On the bottom line, GAAP net income was $59.7 billion, or $2.46 in diluted earnings per share. Non-GAAP earnings per share came in at $2.22, above consensus expectations of around $2.10.
The latest report marked the 15th consecutive quarter in which Nvidia beat expectations.
Outlook for the next quarter
Investor attention shifted to guidance, where Nvidia projected third-quarter revenue of $108 billion, plus or minus 2%. That figure is above the consensus estimate of about $104.2 billion.
During the earnings call, CEO Jensen Huang said that “AI has reached its inflection point.” Nvidia also projected 70% revenue growth for fiscal 2028.
CFO Colette Kress said supply constraints could limit growth, noting that the company’s ability to meet demand may be restricted by production capacity. For readers tracking the wider AI trade, that puts execution and supply chain capacity alongside demand as key factors in the next phase of results.
Market value and revenue concentration
Nvidia’s market capitalization now exceeds $5 trillion. Even so, the stock is up only about 12% to 14% year to date.
The company’s revenue mix remains heavily concentrated in data center sales, which represent approximately 92% of total revenue, leaving Nvidia closely tied to ongoing AI infrastructure spending.
