The chipmaker's quarterly revenue surged 106% year-over-year, driven by relentless demand for AI infrastructure, though supply constraints loom as a risk factor
Nvidia just turned in another quarter that makes the rest of the S&P 500 look like it’s standing still. The company reported $96.2 billion in revenue for its fiscal second quarter of 2027, a 106% jump from the same period last year and an 18% increase from the prior quarter.
Wall Street had penciled in roughly $92.2 billion. Nvidia beat that by $4 billion.
The numbers behind the rebound
Nvidia’s stock had slipped about 1.6% during regular trading on August 26, the kind of pre-earnings jitter that’s become almost ritual for mega-cap tech names. But once the actual results hit, shares reversed course in after-hours trading.
The data center segment, now responsible for approximately 92% of Nvidia’s total revenue, pulled in $89 billion. That’s a 117% increase year-over-year.
On the bottom line, GAAP net income came in at $59.7 billion, translating to diluted earnings per share of $2.46. The non-GAAP EPS of $2.22 cleared consensus estimates of around $2.10.
This marks the 15th consecutive quarter Nvidia has beaten expectations.
Guidance that moved the needle
What really got after-hours traders excited was the forward outlook. Nvidia projected Q3 revenue of $108 billion, plus or minus 2%, which sails past the consensus estimate of approximately $104.2 billion.
CEO Jensen Huang struck a confident tone during the earnings call, stating that “AI has reached its inflection point.” The company also projected 70% revenue growth for fiscal 2028.
CFO Colette Kress flagged supply constraints as a potential ceiling on growth, noting that the company’s ability to meet demand could be limited by production capacity.
A $5 trillion company with modest gains
Nvidia’s market capitalization now exceeds $5 trillion. Yet the stock’s year-to-date performance tells a more complicated story, with shares up only about 12-14% on the year.
The concentration risk in Nvidia’s revenue mix adds another layer to that discussion. With data center revenue accounting for 92% of the total, Nvidia’s fortunes are effectively a pure bet on continued AI buildout.
