Nvidia reported record quarterly revenue of $96.2 billion for its fiscal second quarter, up 106% from a year earlier, according to the company’s August 26 earnings release. The results beat Wall Street’s average forecast of about $92 billion and mark the fastest revenue growth Nvidia has posted since the AI buildout accelerated in 2023.
Data centers drive the surge
Nvidia’s data-center segment — the business selling GPUs and networking gear to cloud providers and AI labs — brought in $89 billion, up 117% year over year and 18% from the prior quarter, the company said. Gross margin held at 75%, and GAAP diluted earnings per share came to $2.46.
For the current quarter, Nvidia guided to revenue of $108 billion, plus or minus 2%, again excluding any China data-center compute sales from the outlook.
A first-ever year-ahead forecast
On the earnings call, Nvidia went further than usual: CFO Colette Kress said the company now expects revenue to grow roughly 70% in fiscal 2028 — its first time offering guidance a full year out — according to CNBC and CFO Dive, which covered the call. That would put annual revenue near $690–700 billion, well above the roughly 44% growth analysts had penciled in.
CEO Jensen Huang told analysts that actual demand for Nvidia’s chips runs well above that 70% figure, but supply — not orders — sets the ceiling. Kress said supply is expected to remain a bottleneck through at least the end of fiscal 2028, even as the company brings its new Vera Rubin chip platform online.
Reading the results against bubble worries
The forecast lands amid persistent debate over whether AI infrastructure spending — a trend our AI capex explainer has tracked as it strains even the largest tech balance sheets, including Alphabet’s, whose free cash flow recently turned negative — is outrunning real demand. Nvidia’s own data-center results suggest, for now, that cloud providers and AI labs are still buying chips as fast as Nvidia can make them.