Q2 FY2027 results
| Metric | Result | Change |
|---|---|---|
| Total Revenue | $96 billion | More than doubled year-over-year |
| Data Center Revenue | $89 billion | 18% quarter-over-quarter increase |
| Hyperscale Revenue | $49 billion | 13% sequential growth |
| AC I&E Revenue | $40 billion | 25% sequential increase |
| Networking Revenue | Not specified | 18% sequential growth |
Guidance and outlook
- Total revenue for Q3 is expected to be $108 billion, plus or minus 2%.
- Q3 GAAP and non-GAAP gross margins are expected to be 74%, plus or minus 50 basis points.
- Fiscal 2028 revenue is expected to grow approximately 70% year-over-year.
- Full year OpEx is expected to grow in the low 50s.
How management sounded
Confident (+8 on our -10 to +10 scale). Management reported record financial results and raised expectations for fiscal 2028 growth to 70% despite supply constraints. Management sounded more upbeat than on 92% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Growth and Constraints
Asked: Joseph Moore from Morgan Stanley asked about the confidence in the 70% growth guidance and the key constraints.
Answer: Management stated that demand is driven by AI agents and sovereign and enterprise adoption, while supply remains the primary bottleneck.
Inference Market Share
Asked: CJ Muse from Cantor Fitzgerald asked about evolving workloads and inference market share.
Answer: Management explained that NVIDIA's architecture is fungible across the AI lifecycle, increasing the revenue opportunity per gigawatt to $40 billion.
Fiscal 2028 Outlook
Asked: Stacy Rasgon from Bernstein Research asked about the contributors to the 70% growth and the impact of supply constraints.
Answer: Management noted that unconstrained demand is significantly higher and growth is driven by both hyperscalers and non-hyperscaler segments like sovereign AI.
Ecosystem Investments
Asked: Vivek Arya from Bank of America Securities asked about the scale of ecosystem investments and balancing them with partners building custom chips.
Answer: Management emphasized that NVIDIA is a platform that runs everywhere and these investments are once-in-a-generation opportunities.
Open Source Models
Asked: Timothy Arcuri from UBS asked if the rise of open models is negative for growth.
Answer: Management stated that both closed and open models are skyrocketing in use and both drive demand for NVIDIA compute.
What to watch before the next call
- Supply chain capacity and yield improvements for Vera Rubin.
- Memory component costs and availability.
- Execution of the revenue-sharing model with Neo Cloud partners.
