Archive · 29 Aug 2026
Nvidia Reports $96.2 Billion Revenue, Guides Toward $108 Billion
Nvidia makes computer chips used to run artificial intelligence systems.
The company said it earned $96.2 billion in its latest quarter.
Most of that money came from its data center business, which sells AI infrastructure.
Nvidia expects to earn about $108 billion in the next quarter.
That would mean adding roughly $12 billion in sales in just three months.
Chief Executive Jensen Huang said AI computing is now helping customers make money.
Some investors believe demand will stay strong because companies, governments, and cloud providers are building AI systems.
Others worry that Nvidia depends on a small group of very large customers, who are also developing their own chips.
Nvidia reported fiscal second-quarter revenue of $96.2 billion, up 106% year over year and 18% sequentially.
Data center revenue reached $89 billion, increasing 117% from a year earlier as Blackwell Ultra infrastructure ramped.
Nvidia guided for $108 billion in fiscal third-quarter revenue, plus or minus 2%, with gross margin expected at 74%.
Hyperscale revenue rose 13% sequentially to $49 billion, while ACIE revenue grew 25% sequentially and 138% year over year.
Analysts and investors are watching whether demand remains broad, margins stabilize, and major customers continue increasing AI infrastructure spending.
- Who
- Nvidia, led by founder and Chief Executive Jensen Huang, reported the results.
- What
- The company reported $96.2 billion in fiscal second-quarter revenue and forecast $108 billion for the next quarter.
- When
- The reported quarter ended July 26, and the results were released August 26.
- Why
- Revenue growth was driven primarily by data center demand and the ramp-up of Blackwell Ultra infrastructure.
Bullish Case
Risks and Bear Case
AI demand durability
Bullish Case
Nvidia says AI has reached an inflection point and that computing is now generating productive, profitable revenue for customers, supporting continued demand.
Risks and Bear Case
The demand may depend on continued increases in capital spending; a slowdown by hyperscalers could sharply reduce growth rates.
Customer concentration
Bullish Case
Demand is expanding beyond major cloud providers to AI-native companies, enterprises, and sovereign customers through the ACIE category.
Risks and Bear Case
A substantial share of revenue still comes from a small number of very large buyers, several of which are developing custom chips to reduce reliance on Nvidia.
Execution and supply
Bullish Case
The $108 billion forecast indicates Nvidia expects sufficient demand and supply to support another major sequential increase.
Risks and Bear Case
Advanced packaging and high-bandwidth memory remain constrained, while the guided gross-margin decline from 75% to 74% could signal pressure on profitability.
- Reported revenue
- $96.2 billion for fiscal second quarter 2027
- Revenue growth
- Up 106% year over year and 18% from the previous quarter
- Data center revenue
- $89 billion, up 117% year over year
- Third-quarter guidance
- $108 billion, plus or minus 2%
- Gross margin
- 75% in the reported quarter; guided to 74% plus or minus 50 basis points
- Hyperscale revenue
- $49 billion, up 13% sequentially
- ACIE growth
- Up 138% year over year and 25% sequentially