NVIDIA Q2 Revenue of $96.22 Billion Beats Expectations, Q3 Guidance at $108 Billion

BlockBeats News, August 27th, NVIDIA's revenue for the second quarter of the 2027 fiscal year more than doubled year-on-year to $96.22 billion, exceeding the market's expected $92.17 billion as per LSEG's data; for the three months ending on July 26th, adjusted earnings per share were $2.22, surpassing the expected $2.10. Revenue from the core data center business also more than doubled to $89 billion, higher than the market's expected $85.08 billion.

NVIDIA expects revenue for the third quarter to be $108 billion, with a variance of 2% above or below, surpassing analysts' average expectation of $104.19 billion; the estimated adjusted gross margin is 74%, with a variance of 0.5 percentage points, below the market's expectation of 74.77%. The market is currently concerned about the impact of Rubin chip mass production and rising storage chip prices on the profit margin.

The company also forecasts a revenue growth of approximately 70% for the 2028 fiscal year and announced an expansion of its partnership with Amazon Web Services (AWS). NVIDIA's CFO Colette Kress stated that during 2027 and 2028, the two parties will deploy an additional 2 million NVIDIA GPUs in the Amazon global infrastructure. NVIDIA also mentioned that the revenue opportunity for its AI chips in 2027 may exceed $1 trillion, which is twice the market opportunity previously mentioned for Blackwell and Rubin chips before 2026, totaling $500 billion.

The third-quarter guidance from NVIDIA does not include any data center chip sales from China. In May of this year, the U.S. government approved approximately 10 Chinese companies, including Alibaba, Tencent, and ByteDance, to purchase H200 chips, but deliveries were subsequently delayed for several months. U.S. Department of Commerce officials stated last month that shipments had begun, but the quantity was still "very small." In June, NVIDIA also started promoting the Vera CPU to Chinese customers, with the earliest possible supply of the product in August.

According to BIT (bit.com) market data, after the financial report was released, NVIDIA's after-hours stock price surged by over 4%. As of Wednesday's close, the company's market capitalization is approximately $5.16 trillion, with the stock price having accumulated a 12.4% year-to-date increase. NVIDIA has exceeded Wall Street's revenue expectations for the past 15 quarters, but the extent of the outperformance is narrowing.