Nvidia reported fiscal second-quarter revenue of $96.22 billion, more than doubling from a year ago and exceeding analyst expectations of $91.90 billion. Adjusted earnings per share came in at $2.22, above the $2.08 forecast. The data center segment, driven by AI demand, generated $89.02 billion in sales, up 117% year-on-year. Adjusted gross margin expanded to 75%, a 250-basis-point increase from the prior year.
The company’s third-quarter revenue guidance of $108 billion, with a 2% margin of error, surpassed the consensus estimate of $105.16 billion. For fiscal 2028, Nvidia projected revenue growth of around 70%, exceeding Wall Street’s 44% expectation. Gross margin is expected to decline to 74% in the third quarter and fall further to a range of 71% to 72% in the fourth quarter, according to CFO Colette Kress.
Nvidia’s two largest clients now account for roughly 30% of revenue, down from 38% in the prior quarter, reflecting a broadening customer base. The company also highlighted $750 billion in combined capital expenditure plans from hyperscalers Microsoft, Meta Platforms, Alphabet, and Amazon, signaling sustained investment in AI infrastructure.
CEO Jensen Huang emphasized that supply constraints remain a limiting factor despite strong demand. "AI has reached its inflection point," Huang said. "Its tokens are productive and profitable. Now, compute is revenue." He added that the company is collaborating with its supply chain to expand capacity.
Analysts maintained bullish outlooks. Barclays reiterated an Overweight rating with a $275 price target, while Mizuho raised its target to $315. Morgan Stanley maintained its Top Pick designation. Gene Munster of Deepwater Management noted that Nvidia’s growth "will probably go up by more than people think in calendar-year 2028."
Nvidia also expanded its partnership with Amazon Web Services, deploying 2 million GPUs across AWS’ global network and deepening collaboration on AI infrastructure, networking, and robotics. The company’s ACIE customer class—sovereign AI firms, neoclouds, startups, and enterprises—is expected to contribute roughly 25% of total revenue next year, according to Barclays.
Shares of Nvidia rose over 6% in pre-market trading but slipped after the guidance announcement.
