Nvidia has reported its fiscal second-quarter revenue, with investors looking to the world’s most valuable company for signals about whether the massive buildout of artificial intelligence (AI) infrastructure can keep its rapid pace.
The California-based chipmaker on Wednesday posted revenue of $96.2 billion for the quarter ended July 26, up 106 percent from a year earlier and 18 percent from the previous quarter.
Net income came in at $59.7 billion, compared with $26.4 billion a year earlier—a 126 percent jump.
Nvidia entered its fiscal second quarter of 2027 with official guidance of $91.0 billion in revenue, give or take 2 percent. Wall Street analysts had expected about $92 billion. Wednesday’s figures comfortably beat both forecasts.
The company now expects third-quarter revenue of $108 billion, plus or minus 2 percent. Nvidia said the outlook assumes no data center compute revenue from China.
If Nvidia reaches that goal, the chipmaker will join a handful of corporate giants to have generated more than $100 billion in sales in a single quarter.
AI Infrastructure in Focus
Nvidia’s highly anticipated earnings have implications well beyond the chipmaker itself.
The company has become deeply intertwined with the broader AI ecosystem, not only as its dominant supplier of computing hardware but increasingly through investments and financing arrangements supporting AI infrastructure.
Its sales and guidance can therefore affect sentiment toward a wide range of component suppliers, semiconductor manufacturers, server makers, as well as its Big Tech customers.
In Wednesday’s report, Nvidia expressed strong confidence that the AI boom still has room to run, with co-founder and CEO Jensen Huang pointing to what he described as a “golden age” of new AI labs and startups.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable,” Huang said in a prepared statement.
“Now, compute is revenue, and demand is accelerating,” he added.
The performance of Nvidia’s data center business has become one of the most closely watched indicators of AI infrastructure spending.
For the second quarter, data center revenue reached a record $89 billion, up 18 percent from the previous quarter and 117 percent from a year earlier.
Edge computing revenue, a category that includes Nvidia’s automotive, robotics and gaming businesses, climbed 27 percent year over year to $7.2 billion and was up 13 percent from the first quarter.
Huang said the AI infrastructure buildout remains “at full steam,” adding that Nvidia’s upcoming next-generation Vera Rubin platform is now in full production.
Stock Market Reacts
The months leading up to Wednesday’s report had been volatile for semiconductor and AI-related stocks, as investors weighed the enormous amounts of capital being poured into data centers against questions over how quickly those investments will generate returns.
At the same time, some of the biggest buyers of Nvidia chips are working to reduce their dependence on its processors. Amazon, Google, and Meta have been developing their own AI chips, with Amazon seeking to rent out the computing power through its cloud computing service.
Nvidia shares have faced pressure since reaching a record high of $236.54 in May. It entered Wednesday’s earnings announcement having fallen for seven consecutive sessions.
Shares closed Wednesday at $209.66, down about 1.6 percent for the day. But those after-hours losses have been reversed as the stock rebounded during Nvidia’s earnings call with analysts.
At the time of publication, Nvidia shares have recovered to about $217 after hours, roughly 3.5 percent above its closing price.
