Nvidia Corp. reported a more than doubling of revenue and net income in its fiscal second quarter ended July 26, as demand for artificial intelligence chips remained robust. The company posted revenue of $96.2 billion and net income of $59.7 billion, both exceeding the prior-year period by over 100%. For the current third quarter, Nvidia guided revenue to $108 billion, plus or minus 2%, with adjusted gross margins of 74%, plus or minus 0.5 percentage points.
The outlook reflects continued strength in AI infrastructure spending, with CEO Jensen Huang stating that the expansion of AI capabilities is proceeding at full capacity. The company’s new Vera Rubin chip architecture, designed for agentic AI applications, is now in high-volume production. Vera Rubin targets complex inference tasks, offering improved energy efficiency and performance compared to prior generations.
Jefferies analyst Blayne Curtis raised Nvidia’s long-term revenue forecast, projecting annual sales of $700 billion in the fiscal year ending January 2028, a 70% increase from the prior year. Curtis described the outlook as conservative, with Nvidia on track to surpass $1 trillion in annual revenue by 2029. The forecast assumes sustained demand for AI infrastructure and higher revenue per gigawatt of performance from Vera Rubin systems.
Nvidia’s market capitalization reached nearly $5.1 trillion on Wednesday, maintaining its position as the world’s most valuable company. The stock surged 7% in pre-market trading on Thursday following the guidance, recovering from recent declines in the broader AI sector. Analysts at Goldman Sachs and Bernstein Research raised their price targets to $300 and $400, respectively, citing Nvidia’s leadership in AI hardware and software.
The company is expanding beyond traditional data center chips, with recent product launches including the Orin Nano 2, an edge AI computing platform for robotics and drones. Nvidia is also pursuing strategic acquisitions, with reports suggesting a potential $13 billion deal to acquire Hugging Face, a key player in open-source AI development.
To further fuel AI infrastructure growth, Nvidia announced partnerships with major financial firms including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, aiming to raise over $500 billion for AI-focused funds. The company has also provided financing guarantees, including a reported $120 billion commitment for OpenAI’s planned data center in Ohio, down from an earlier $250 billion estimate.
Analysts at Bank of America noted that the shift toward third-party financing could reduce Nvidia’s exposure to circular funding structures criticized in the industry. The company’s broad-based expansion reflects efforts to maintain dominance amid rising competition from AMD, Intel, Broadcom, and Marvell, as well as in-house chip development by major cloud customers like Amazon, Microsoft, and Meta.
