Nvidia Corp. on Tuesday raised its revenue forecast for the current fiscal year to $108 billion, up from a prior consensus of $104.19 billion, while reporting second-quarter revenue that more than doubled to $96.22 billion, exceeding estimates of $92.17 billion.
The Santa Clara-based company now expects fiscal 2028 revenue to surge 70%, compared with a prior analyst average of 44% growth. Data center revenue, the primary driver of its expansion, more than doubled to $89 billion in the quarter ended July 26, beating estimates of $85.08 billion. Adjusted earnings per share reached $2.22, ahead of the $2.10 forecast.
Gross margins are projected to decline sequentially, with profit margins bottoming in the fourth quarter at 71% to 72%, down from about 74% in the third quarter. Analysts had anticipated 74.77% margins for the current quarter. Nvidia attributed margin pressure to rising memory and component costs despite strong demand.
The company highlighted accelerating adoption of its AI infrastructure beyond hyperscalers, including AI clouds, enterprises, sovereign buyers and industrial customers. Its Vera Rubin platform is expected to account for roughly one-fifth of data center revenue in the current quarter, while AI Labs demand is projected to represent about a quarter of total business next year. Companies such as Nebius and CoreWeave are on track to exit 2026 with over eight gigawatts of Nvidia GPU capacity, up from three gigawatts at the end of 2025.
Nvidia also announced an expansion of its partnership with Amazon Web Services, deploying an additional two million Nvidia graphics processors across AWS’s global infrastructure between 2027 and 2028. The Vera CPU designed for the Chinese market was pitched to clients in June, with availability targeted for August, though deliveries of the H200 chip to Chinese firms remain limited following U.S. export restrictions.
Shares of Nvidia rose nearly 5% in extended trading after initially declining over 1% during regular hours. Jensen Huang, chief executive, emphasized the company’s shift from forecast guidance to multi-year projections, stating that AI has reached an inflection point where compute directly translates to revenue. Colette Kress, chief financial officer, noted that demand growth is outpacing supply, constraining capacity despite rising costs.
