Nvidia increased its revenue by 106 percent in the second quarter of fiscal 2027 compared to the same period last year. to $96.2 billion took it out. In the growth of the company $89 billion in data center revenue While playing the lead role, this division grew by 117 percent annually. However, demand for artificial intelligence infrastructure continues to increase the supply shortage in HBM and other memory components. Thus, Nvidia more than doubled its sales and faced rising memory costs.
First of all, it should be noted that the figure of 96.2 billion dollars represents the company’s total income. Nvidia in the same quarter $72.1 billion gross profit And GAAP net profit of $59.7 billion explained. Additionally, the company’s revenue rose 18 percent compared to $81.6 billion in the previous quarter. The company announced a revenue of 46.7 billion dollars in the same period last year, thus more than doubling its sales in a year. In addition, Nvidia percent 75 gross profit margin Diluted GAAP earnings per share increased to $2.46.
The data center business alone accounted for more than 92 percent of Nvidia’s revenue in the second quarter. The company is from this section $89 billion while its annual growth rate reached 117 percent. In comparison, Nvidia earned $7.2 billion in revenue from other activities collected under the Edge Computing title. CEO Jensen Huang said that artificial intelligence laboratories, cloud providers, companies and physical artificial intelligence projects are increasing their infrastructure investments. Additionally, Nvidia began increasing production of the Vera Rubin platform while continuing to ship Blackwell-based systems.
The supply shortage in the global semiconductor market is concentrated at a different point than the previous chip crisis. In particular, high-bandwidth memory, or HBM, used by artificial intelligence accelerators is at the center of strong demand. Meanwhile, SK hynix CEO Kwak Noh-Jung said that the tightness in memory supply It could last until 2030 announced his prediction. SK hynix held about 58 percent of the global HBM market in the first part of 2026, according to data cited by Reuters. Therefore, Nvidia’s artificial intelligence investments, which increase its sales, are also rapidly increasing the demand that memory manufacturers are trying to meet.
AI demand grows Nvidia’s revenue but drives up memory costs
The rise in memory prices also directly corresponds to Nvidia’s financial expectations. While the company announced a 75 percent gross profit margin in the second quarter, approximately 74 percent gross margin predicts. On the other hand, Reuters reports that Nvidia faces supply shortages and rising costs in memory components. The company thus increases production to meet high GPU demand while also monitoring the costs of HBM and other critical components. The financial forecasts announced by Nvidia also include this cost pressure in the calculation for the next quarter.
Nvidia in the third quarter $108 billion revenue and gives a range of plus or minus 2 percent for the estimate. However, the company did not include any data center computing revenue from China in this account. According to information provided by Reuters, management projects revenue growth of approximately 70 percent in the fiscal year that ends in January 2028. Additionally, additional GPU installations and new artificial intelligence laboratories planned with Amazon Web Services are among the topics supporting the demand. Increasing production volume of Vera Rubin systems will also play a role in Nvidia’s data center sales in the coming quarters.
The Chinese market continues to be one of the most important external variables for the company. US export restrictions on advanced AI chips directly impact the data center revenue Nvidia can generate from China. For this reason, the company announced its third quarter China data center sales excluded from $108 billion revenue forecast. In contrast, cloud providers and artificial intelligence companies in other regions continue their GPU investments. Nvidia management also prepared its revenue forecast by taking these orders and current production plans into consideration.
Following the financial results, Nvidia shares reversed their initial decline and rose about 4.2 percent in after-hours trading. Then, in the transactions on August 27, the rise in technology stocks also supported the Nasdaq index. In addition, major technology companies will increase their total artificial intelligence infrastructure by 2026. over $730 billion is expected to spend. Nvidia generates revenue from these expenses through data center GPUs, networking products and accelerated computing solutions. The company’s data center revenue, which reached $89 billion in the second quarter, reveals the share of these expenses in Nvidia’s balance sheet.
Nvidia’s fiscal 2027 second quarter statement $96.2 billion in revenue, $59.7 billion net profit And $89 billion data center revenue It is located. The company increased its revenue by 106 percent and its data center revenue by 117 percent compared to the same period last year. Additionally, while the third-quarter estimate came to $108 billion, Nvidia did not include Chinese data center revenue in this calculation. On the memory side, SK hynix predicts that the HBM supply squeeze could last until 2030. Nvidia, on the other hand, is preparing for the coming quarters with Blackwell shipments, Vera Rubin production and cloud providers’ GPU investments.
Join Channel