Nvidia Reports Earnings: Q2 Revenue Reaches $96.2 Billion! Huang Renxun States It's Not the Storage Surge That Earns Us More

Nvidia finally released its latest quarterly earnings report, which has been closely watched by the global tech market, with all core metrics significantly exceeding market expectations.

According to the latest financial data for Q2 of fiscal 2027, total revenue reached $96.2 billion, up 106% year-over-year; adjusted earnings per share came in at $2.22, up 120% year-over-year. Both core profitability indicators substantially beat analysts' forecasts.

By segment, the data center business, which accounts for the bulk of Nvidia's revenue, brought in $89 billion in the quarter, up 117% from the same period last year and ahead of the $85.86 billion consensus estimate.

Edge computing revenue reached $7.2 billion, up 13% quarter-over-quarter and 27% year-over-year. Gross margins under both GAAP and non-GAAP standards remained stable at 75.0%, with profitability still at extremely high levels.

Nvidia also provided guidance for Q3 of fiscal 2027, projecting total revenue of approximately $108 billion, with a variance of no more than 2%, versus the market consensus of $105.15 billion. Gross margins under both GAAP and non-GAAP are expected to hold at 74.0%, with a variance of just 50 basis points.

During the subsequent earnings call, Nvidia's CFO revealed that total revenue for fiscal 2028 is expected to grow approximately 70% year-over-year, far exceeding the market's prior estimate of 45%.

CEO Jensen Huang also acknowledged on the call that the company has never provided guidance a full fiscal year in advance before. Breaking with convention to publicly disclose long-term growth expectations is itself a signal of high confidence in the business outlook.

Additionally, the CFO disclosed that shipments of the next-generation AI chip Vera Rubin began earlier this month. Every 1 gigawatt of deployed Vera Rubin compute capacity corresponds to roughly $40 billion in revenue opportunity. The new chip is expected to contribute about 20% of data center revenue in Q3, quickly taking over from the previous generation as the new growth engine.

Nvidia also admitted that, at least through fiscal 2028, supply capacity for high-end AI chips remains the core bottleneck constraining business growth. The entire industry is currently facing extreme pressure from soaring memory prices. Huang directly stated that without supply-side constraints, the fiscal 2028 outlook would be significantly higher than the figures now publicly disclosed.

Notably, after the better-than-expected report was released, Nvidia's stock quickly reversed its earlier decline and moved higher in intraday trading. The CFO also confirmed on the call that none of the revenue figures in this report include contributions from the Chinese market. Huang had previously stated publicly that Nvidia's share of the AI chip market in China has fallen to zero, with nearly all of that share ceded to domestic AI chips from Huawei.

The signals from this earnings report make it clear that the global supply-demand gap in AI compute will persist for at least another two years. Until domestic replacement capacity fully comes online, overseas leading AI chip makers will continue to see revenue growth at levels far exceeding other tech sectors. The dividend period for the entire AI compute track is far from over.