NVIDIA delivered another blockbuster quarterly performance, with strong demand for its high-end computing chips pushing revenue and profit well above Wall Street expectations. The results offer fresh evidence that spending on advanced computing infrastructure remains strong, despite growing questions about how long the current technology investment cycle can continue.
For the second quarter of fiscal 2027, NVIDIA reported revenue of $96.22 billion, up 106% from the same period last year and 18% from the previous quarter. Analysts expected revenue of about $92.27 billion. Adjusted earnings came in at $2.22 per share, ahead of the $2.09 consensus forecast.
Net income reached $59.69 billion, compared with $26.42 billion a year earlier. GAAP earnings per diluted share stood at $2.46, compared with $1.08 in the year-ago quarter. NVIDIA's gross margin remained around 75%, showing that the company so far maintained strong profitability while scaling production.
The company's data centre division once again did most of the heavy lifting. Revenue from the segment reached $89 billion, an increase of 117% from a year earlier.
The figure reflects continued purchases by major cloud providers and technology companies building large computing facilities. NVIDIA said demand is also spreading beyond the biggest cloud companies to AI research firms, enterprises, sovereign buyers and newer cloud providers.
However, supply remains a constraint. NVIDIA said it currently has enough supply to meet only about 70% of demand, underscoring how strong orders remain. The company expects its next-generation Vera Rubin platform to support another phase of growth.
NVIDIA's outlook was another major positive for investors. The company expects third-quarter revenue of around $108 billion, plus or minus 2%, above Wall Street's latest expectations.
More unusually, NVIDIA also provided an indication of its longer-term outlook. The company expects revenue to grow by roughly 70% in fiscal 2028, substantially above the approximately 44% growth analysts had been anticipating.
The company also announced an expanded relationship with Amazon Web Services, which plans to deploy two million additional NVIDIA GPUs.
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Despite the strong numbers, NVIDIA faces several challenges. Rising memory costs could put pressure on margins, while US export restrictions continue to limit the company's business in China. Major technology companies are also developing their own processors, potentially reducing reliance on NVIDIA over time.
NVIDIA shares initially fell during regular trading before rising about 4% in after-hours trading following the results. The stock was also higher in premarket trading on Thursday as investors responded to the stronger outlook.
The key takeaway is clear: NVIDIA's latest results show that demand for high-end computing infrastructure remains exceptionally strong. The bigger question for investors is now whether the company can maintain this pace as competition increases, supply constraints persist, and the technology industry enters an increasingly expensive phase of expansion.