Nvidia Posts Record $96.2 Billion Quarter and Forecasts 70% Revenue Growth in Fiscal 2028, Sending Shares Up Nearly 9%

Nvidia reported fiscal second-quarter 2027 revenue of $96.2 billion, up 106% year over year and well above the analyst consensus of roughly $92.2 billion, with adjusted earnings per share of $2.22 beating estimates of about $2.10 by a wide margin. Data center revenue drove the bulk of results at $89 billion, up 117% year over year. The company guided third-quarter revenue to approximately $108 billion, plus or minus 2%, topping Wall Street expectations of around $103.5 billion, and raised its fiscal 2028 full-year revenue growth outlook to roughly 70%, sharply above the prior analyst consensus of about 45%.

Shares closed up approximately 8.65%, their best single-day gain since April 2025, adding roughly $442 billion in market capitalization, which Bloomberg called the second-largest single-day market cap gain on record. The Nasdaq Composite rose 1.57% and the S&P 500 gained 0.72% on the session. CEO Jensen Huang said underlying demand is running even hotter than current growth rates suggest, with supply constraints from memory costs, power availability, and data center capacity acting as the binding limits.

Gross margin held at 75% in the quarter but is expected to decline to 74% next quarter and then to 71-72% the following quarter as rising memory costs bite, with recovery not expected until fiscal 2028. Vera Rubin systems are expected to account for 20% of data center revenue in the third quarter, representing Nvidia's fastest-ever product ramp. At least fifteen analysts raised price targets after the report, with Melius moving to $420, Bernstein to $400, Rosenblatt to $390, Raymond James to $515, JPMorgan to $320, Mizuho and Citi to $315, and Goldman Sachs to $300, while BofA reiterated its $350 target and Buy rating.

Nvidia also reportedly agreed to acquire open-source AI platform Hugging Face for $12.9 billion, according to The Information, though Business Insider noted no signed agreement had been reached as of Wednesday night. Separately, the company disclosed it had paused its revenue-sharing program with smaller AI cloud providers less than two months after announcing it, after internal concerns that restrictions on who providers could rent GPUs to might attract antitrust scrutiny. The program had generated $36 billion in commitments.

The US Commerce Department's Bureau of Industry and Security was separately reported to be investigating Singapore-based Apex Logistics over 47 suspected shipments of Nvidia-powered Super Micro servers to China in breach of export controls, marking the first such action targeting a freight company. Nvidia also announced it would form an employee-funded political action committee called NVPAC. President Trump publicly praised the results, and Jensen Huang's net worth surpassed Larry Ellison's following the stock surge.