Revenue surged 106% to $96.2 billion, but supplier commitments, accounts receivable and lower free cash flow raised concerns.
Nvidia’s second-quarter results showed continued strength in artificial-intelligence demand, but supplier commitments, accounts receivable and free cash flow raised concerns about the company’s outlook.
Revenue reached $96.2 billion in fiscal 2027’s second quarter, up 106% from a year earlier. Net income rose 126% to $59.69 billion, while the data-center business generated $89 billion in revenue, a 117% increase.
Nvidia guided for about $108 billion in revenue in the third quarter, with demand for its chips constrained by supply. The company projects roughly 70% revenue growth for fiscal 2028, above the 45% consensus estimate before the results.
Gross margin was 75% and Nvidia expects it to decline to about 74% in the third quarter. Rising memory costs are contributing to the pressure.
The company has committed up to $105 billion in guarantees tied to an OpenAI data-center lease in Ohio and is participating in a $500 billion AI infrastructure financing consortium. Executives rejected descriptions of those commitments as circular financing.
Quarterly cash flow was $21.3 billion, down sharply from prior quarters. Nvidia also remains dependent on a small group of hyperscalers, some of which are developing proprietary chips to reduce their reliance on the company.
