Nvidia Posts Record $96.2 Billion Quarter and Guides 70% Revenue Growth for Fiscal 2028, Stock Surges Nearly 9%

Nvidia reported fiscal second-quarter 2027 revenue of $96.2 billion, up 106% year over year and well ahead of analyst estimates of roughly $92.2 billion, with data center revenue alone hitting $89 billion, a 117% annual gain. Adjusted earnings per share came in at $2.22, beating the consensus of $2.10 and rising 120% from a year earlier. The company guided for third-quarter revenue of approximately $108 billion, plus or minus 2%, surpassing Wall Street's estimate of around $103.5 billion, and projected roughly 70% revenue growth for fiscal 2028, more than double the analyst consensus of 45%.

Shares surged as much as 9% on Thursday, adding approximately $442 billion in market capitalization in what Bloomberg called the second-biggest single-day stock gain ever, breaking a streak of four consecutive post-earnings selloffs. The Nasdaq Composite rose 1.57% and the S&P 500 gained 0.72% on the strength of the results. CEO Jensen Huang said demand is growing roughly twice as fast as supply and described current constraints as a memory chip crunch that has exceeded even Nvidia's own expectations.

Gross margin, steady at 75% for two straight quarters, is expected to fall to roughly 74% next quarter and then to 71-72% the quarter after that as memory costs rise, with recovery not anticipated until fiscal 2028. The new Vera Rubin architecture is expected to account for 20% of data center revenue in the third quarter, representing roughly $20 billion and what Nvidia described as the fastest product ramp in its history. The company also disclosed approximately $279 billion in cumulative multi-year supply and off-balance-sheet commitments.

At least 15 analysts raised price targets after the results, with targets ranging from Goldman Sachs at $300 to Melius at $420 and Raymond James at $515, the latter suggesting $1 trillion in annual sales by fiscal 2029 is possible; the median analyst target now stands at $330. On the deal front, The Information reported that Nvidia has agreed to acquire open-source AI platform Hugging Face for $12.9 billion, nearly triple its 2023 valuation, though Business Insider noted as of Wednesday night no agreement had been signed and talks could still fall through. Separately, the U.S.

Commerce Department's Bureau of Industry and Security is investigating Singapore-based Apex Logistics over 47 shipments from 2024 that are suspected to have routed Nvidia-powered servers to China in breach of export controls, a probe that would mark the first enforcement action against a transportation company in the illegal semiconductor trade. Nvidia itself has not been accused of wrongdoing. Amazon announced it is adding 2 million additional Nvidia GPUs through 2028 via an expanded AWS partnership, on top of 1 million chips already being deployed.

Nvidia also disclosed plans to form an employee-funded political action committee called NVPAC to influence chips and AI policy in Washington.