- Nvidia (NASDAQ:NVDA) reported record Q2 FY2027 revenue of US$96.2 billion, up 18 per cent quarter-over-quarter and 106 per cent year-over-year, driven by strong demand for AI infrastructure and data centre products
- Data centre revenue reached US$89.0 billion, up 117 per cent from a year ago, while GAAP net income climbed to US$59.7 billion and diluted EPS rose 128 per cent to US$2.46
- Nvidia returned US$26.0 billion to shareholders through buybacks and dividends and expects Q3 FY2027 revenue of US$108.0 billion, despite assuming no data centre compute revenue from China
- Nvidia stock (NASDAQ:NVDA) last traded at US$206.94
“AI has reached its inflection point”
Nvidia (NASDAQ:NVDA) reported record financial results for the second quarter of fiscal 2027, showing continued strength of the artificial intelligence boom as demand for its data centre and AI infrastructure products accelerated worldwide.
The chipmaker reported revenue of US$96.2 billion for the quarter ended July 26, 2026, an increase of 18 per cent from the previous quarter and 106 per cent compared with the same period last year. Revenue topped the company’s first-quarter total of US$81.6 billion and more than doubled the US$46.7 billion generated a year earlier.
This article is a journalistic opinion piece that has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” Nvidia’s founder and CEO, Jensen Huang said in a news release. “And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”
Profitability also remained exceptionally strong. Nvidia posted a GAAP gross margin of 75.0 per cent, up from 72.4 per cent a year ago, while GAAP net income reached US$59.7 billion, a 126 per cent year-over-year increase. Diluted earnings per share climbed to US$2.46, up 128 per cent from US$1.08 in the second quarter of fiscal 2026.
On a non-GAAP basis, the company reported net income of US$54.0 billion and earnings per diluted share of US$2.22, representing year-over-year gains of 118 per cent and 120 per cent, respectively.
The results highlight Nvidia’s dominant position in the global AI infrastructure market, with the company’s data centre division continuing to serve as its primary growth engine.
Data centre business leads growth
Nvidia’s data centre segment generated US$89.0 billion in revenue, accounting for the vast majority of total company sales. The figure was up 18 per cent sequentially and 117 per cent year over year.
The company said production of its next-generation Vera Rubin AI platform is ramping across major cloud providers and AI infrastructure operators, including Microsoft Azure, Google Cloud, Oracle Cloud Infrastructure, CoreWeave and Nebius.
During the quarter, Nvidia also introduced several new technologies aimed at expanding its AI ecosystem, including:
- The Vera CPU, designed specifically for AI agents.
- Spectrum-6 networking systems for large-scale AI factories.
- The DSX platform, a blueprint for building AI infrastructure at scale.
- Groq 3 LPX, an AI inference accelerator now in full production.
- Enhanced security capabilities through Vera BlueField-4 STX.
The company further expanded its global footprint through partnerships in Japan, South Korea and Europe, while announcing collaborations with major financial firms including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to support future AI infrastructure investments.
Edge computing revenue reaches US$7.2 Billion
Nvidia’s fast-growing Edge Computing segment generated US$7.2 billion in revenue, up 13 per cent from the previous quarter and 27 per cent year over year.
The division benefited from a series of announcements spanning AI-powered PCs, robotics and autonomous systems. Notable developments included a partnership with Microsoft around RTX Spark, a new AI superchip for Windows PCs, and the launch of DGX Station for Windows, described by Nvidia as the world’s most powerful deskside AI supercomputer.
The company also expanded its autonomous vehicle and robotics initiatives through the DRIVE Hyperion platform and unveiled new physical AI technologies, including the Cosmos 3 foundation model, the Isaac GR00T Reference Humanoid Robot, and the Halos for Robotics safety platform.
Shareholder returns continue
Nvidia continued to return substantial capital to investors during the quarter.
The company returned approximately US$26.0 billion through a combination of share repurchases and cash dividends. At the end of the quarter, Nvidia still had roughly US$99.0 billion available under its existing share repurchase authorization.
In addition, Nvidia declared its next quarterly cash dividend of US$0.25 per share, payable on October 1, 2026, to shareholders of record as of September 10, 2026.
Strong outlook for third quarter
Looking ahead, Nvidia forecast another quarter of robust growth.
The company expects third-quarter fiscal 2027 revenue of approximately US$108.0 billion, plus or minus 2 per cent, despite noting that its guidance does not assume any data centre compute revenue from China.
Nvidia projected:
- GAAP and non-GAAP gross margins of approximately 74.0 per cent, plus or minus 50 basis points.
- GAAP operating expenses of about US$9.2 billion.
- Non-GAAP operating expenses of about US$9.0 billion.
For the full fiscal year, Nvidia expects both its GAAP and non-GAAP tax rates to range between 16 per cent and 18 per cent, excluding discrete items and significant changes in its tax environment.
AI infrastructure spending remains the key driver
The latest earnings report suggests demand for AI computing infrastructure remains exceptionally strong. Nvidia’s operating income surged 124 per cent year over year to US$63.7 billion, while gross margins remained near record levels, indicating the company continues to command significant pricing power across its AI product portfolio.
With annual growth rates still exceeding 100 per cent, large-scale deployment of AI factories, sovereign AI infrastructure projects, next-generation cloud computing platforms and enterprise AI systems continues to fuel Nvidia’s rapid expansion.
As the company enters the second half of fiscal 2027, investors will closely watch whether Nvidia can maintain its extraordinary growth trajectory while scaling production of its Vera Rubin platform and meeting a projected quarterly revenue run rate exceeding US$100 billion.
About Nvidia Corp.
Nvidia Corp. is a full-stack computing infrastructure company.
Nvidia stock (NASDAQ:NVDA) closed 2.87 per cent lower at US$206.94 but has risen more than 12 per cent since the year began.
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