Nvidia smashes earnings expectations with $96B quarter, sees accelerating AI demand
Nvidia reported Q2 revenue of $96.2 billion, up 106% year-over-year, beating analyst estimates. The company also guided to $91 billion for the current quarter and projected 70% revenue growth for fiscal 2028. CEO Jensen Huang said demand for AI chips is accelerating, and shares rose in after-hours trading.
The company's data center segment, which accounts for the vast majority of its AI-related business, generated $89 billion in revenue, with hyperscale customers contributing $48.7 billion and AI cloud, industrial, and enterprise clients adding $40.3 billion. Non-GAAP earnings reached $2.22 per diluted share, exceeding analyst projections of roughly $2.06 to $2.09.
Nvidia's forward guidance of approximately $91 billion for the current quarter also surpassed consensus expectations. The company's stock initially dipped following the report before climbing more than 5% in after-hours trading as executives elaborated on results during the earnings call. Management also noted that stock-based compensation is now included in non-GAAP figures, altering direct comparisons with prior fiscal periods.
This earnings report could reinforce confidence in the AI infrastructure buildout, potentially influencing capital allocation decisions across the technology sector. Companies relying on Nvidia's chips may face continued pricing pressure, while investors could see AI-related valuations as increasingly justified. Broader economic effects may emerge as businesses weigh AI adoption costs against productivity gains, though sustained demand will depend on whether AI applications translate into durable revenue for end users.