Nvidia Posts $96 Billion Quarter, Guides to $108 Billion on Accelerating AI Demand

Nvidia reported fiscal second-quarter revenue of $96.2 billion on August 26, beating the Wall Street consensus of roughly $92.1 billion by about 4.5 percent, according to the company's Form 8-K filed with the SEC. Adjusted earnings came in at $2.22 per diluted share against analyst expectations of $2.10, and it was the fourteenth consecutive quarter in which Nvidia cleared its own guidance midpoint, per figures reviewed by RexShares.

The data center segment did the heavy lifting. According to the 10-Q filed the same evening, data center revenue reached $89.0 billion, up 117 percent from a year earlier and 18 percent sequentially, driven by the ramp of Blackwell Ultra infrastructure. That single segment accounted for roughly 92 percent of the company's total revenue, the same share as the prior quarter. Within it, the AI clouds, industrial, and enterprise sub-segment grew 138 percent year over year, while hyperscale revenue more than doubled.

The number traders actually moved on was the forward guide. Nvidia set third-quarter revenue guidance at $108 billion, a sequential step of $11.8 billion, and about 4 percent above the street consensus, according to RexShares. CEO Jensen Huang, in prepared remarks included in the SEC filing, said "AI has reached its inflection point" and that "demand is accelerating."

On the same call, the company disclosed that Amazon Web Services will purchase 2 million Nvidia GPUs and deploy the company's Vera CPU, according to reporting by CNBC. The deal extends supply commitments through 2027 and 2028, covering Blackwell Ultra and the forthcoming Rubin and Rubin Ultra architectures, and includes 100,000 GPUs earmarked for U.S. government AI infrastructure projects. Analysts tracking the stock noted that AWS demand had already exceeded the 1 million GPUs pledged at Nvidia's GTC conference earlier in 2026.

Not every number was clean. Management flagged a gross margin headache that traders will need to price. CFO Colette Kress said on the earnings call, as reported by CNBC, that gross margins are expected to decline and bottom out in fiscal fourth-quarter 2027, settling in the 71-to-72 percent range, partly because of memory scarcity. "Memory scarcity today is being driven in large part by the AI buildout itself," Kress said. That's a problem Nvidia helped create: the same hyperscaler capital spending that fills its order book is tightening the supply of high-bandwidth memory needed to build its own products. Current-quarter gross margin was 75 percent.

Shipments to China were negligible. The 10-Q disclosed that data center Hopper product sales to China in the quarter represented less than 1 percent of data center revenue, leaving the $108 billion Q3 guide with, as noted by 24/7 Wall St., zero China compute assumed in the forward numbers.

Nvidia shares rose roughly 8.7 percent in after-hours trading on August 26, according to 24/7 Wall St., adding an increment of market cap to a company already valued above $5 trillion. Year-to-date, the stock is up more than 13 percent entering the print, per CNBC market data. The growth rate itself is decelerating: year-over-year revenue acceleration peaked at 106 percent this quarter, and the mid-to-high 80 percent range implied by Q3 guidance marks a step down. Whether that deceleration matters to a stock trading at a significant premium to historical semiconductor multiples is the argument Wall Street will be working through for the next 90 days.

Alphabet, Amazon, Meta, and Microsoft are collectively expected to spend approximately $745 billion in capital expenditure during 2026, according to the Financial Times, providing the demand floor underneath Nvidia's forward numbers. But as noted in analysis by IndMoney, not every dollar of that capex flows to Nvidia; buildings, power, networking, memory, and internally designed chips all take a share.

Sources cited:
- NVIDIA Form 8-K (SEC Filing, Aug. 26, 2026) (https://www.sec.gov/Archives/edgar/data/0001045810/000104581026000073/q2fy27pr.htm)
- NVIDIA Form 10-Q (SEC Filing, Aug. 26, 2026) (https://www.sec.gov/Archives/edgar/data/0001045810/000104581026000075/nvda-20260726.htm)
- CNBC, Nvidia earnings takeaways, Aug. 26, 2026 (https://www.cnbc.com/2026/08/26/nvidia-nvda-earnings-report-q2-2027-live-updates.html)
- RexShares, Nvidia Earnings Q2 FY27 analysis (https://www.rexshares.com/nvidia-earnings/)
- 24/7 Wall St., NVIDIA Q2 2027 earnings recap (https://247wallst.com/cards/nvidia-q2-2027-earnings-nvda-01m0zw3hstde6rb2mt0kwj6d2c)
- IndMoney, Nvidia Q2 Earnings Preview (https://www.indmoney.com/blog/us-stocks/nvidia-stock-q2-earnings-preview-nvda)