Nvidia reported fiscal second-quarter adjusted earnings of $2.22 per share on revenue of $96.22 billion, both exceeding analyst estimates of $2.08 per share and $91.90 billion, respectively. Revenue more than doubled from a year earlier, driven by a 117% year-on-year increase in data center sales to $89.02 billion. Adjusted gross margin expanded to 75%, up 250 basis points from the prior year.
The company’s outlook for the third quarter included revenue guidance of $108 billion, plus or minus 2%, which surpassed the consensus estimate of $105.16 billion. Gross margin is projected to decline to 74% in the third quarter and to a range of 71% to 72% in the fourth quarter. For fiscal 2028, Nvidia raised its revenue growth outlook to around 70%, exceeding Wall Street expectations of 44%.
Nvidia’s two largest customers accounted for about 30% of revenue in the quarter, down from roughly 38% in the prior quarter. The company expects approximately 25% of total revenue next year to come from its ACIE customer segment, which includes sovereign AI companies, neoclouds, startups, and enterprises. Nvidia also expanded its partnership with Amazon Web Services to deploy 2 million graphics processing units across AWS’ global network, with additional collaboration across AI factories, CPUs, networking, open models, data processing, and robotics.
Analysts highlighted Nvidia’s strategic positioning in the AI infrastructure buildout. Barclays’ Tom O’Malley noted that growth is being driven by the faster-ramping ACIE bucket, while Morgan Stanley’s Joseph Moore maintained Nvidia as a Top Pick, citing a compelling product cycle, exceptional growth, and valuation below peers. Deepwater Management’s Gene Munster said the company’s numbers exceeded expectations and could continue to surpass forecasts in 2028.
Nvidia’s shares slipped in after-hours trading following the report. The Philadelphia Semiconductor Index fell more than 20% in July after a multi-month rally, reflecting broader volatility in the sector.
CEO Jensen Huang emphasized the company’s ability to meet demand despite supply constraints, stating that AI has reached an inflection point where compute directly translates to revenue. He also highlighted the emergence of a new wave of AI labs and startups, alongside a thriving open-model ecosystem and growing physical AI applications globally.
