NVIDIA has released its results for the second quarter of its 2027 fiscal year, and the figures leave no room for doubt: the demand for artificial intelligence continues to soar. The company reported revenue of $96.200 billion , a 106% increase year-over-year, exceeding consensus expectations of around $92.000 billion. Net income reached $59.700 billion, a 126% year-over-year increase, while adjusted earnings per share (EPS) came in at $2,22, above the $2,10 expected by analysts.
However, the market reaction has been curious, to say the least. Shares initially fell after the release, only to turn upwards during the analyst conference. This behavior reflects the enormous demands placed on a company that faces its quarterly results with the market on edge , having beaten expectations for 14 consecutive quarters, but which increasingly needs to exceed them by a larger margin to avoid disappointment. The options market was already anticipating a move of around 6% in either direction.
Record figures in the second quarter
Revenue of $96.200 billion represents an 18% increase compared to the previous quarter, when the company reported $81.615 billion. Gross margin remained at 75%, an exceptional level for a semiconductor company, thanks to an improved product mix resulting from the rollout of Blackwell Ultra. The company allocated $19.700 billion to share repurchases during the quarter and has pending authorization for approximately $99.000 billion to continue doing so. In addition, it announced a quarterly dividend of $0,25 per share, payable on October 1.
GAAP net income reached $59.700 billion, compared to $26.400 billion in the same period of the previous year. On an adjusted basis, net income was $54.000 billion, a 118% increase. These figures confirm that the investment cycle in artificial intelligence infrastructure shows no signs of slowing down, with the data center division as the main driver of the business.
The data center, an unstoppable engine
The data center division generated $89.000 billion , a 117% increase year-over-year. Within this segment, the ACIE (AI, industry, and enterprise clouds) business grew 138% year-over-year, demonstrating that demand is no longer solely driven by large hyperscalers. The company highlighted the deployment of Blackwell Ultra and the launch of the Vera Rubin platform, which is already running on racks from partners such as CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Nebius.
Shipments of Hopper products to China accounted for less than 1% of data center revenue in the quarter, and the company does not include computing revenue for that market in its third-quarter guidance. The Edge Computing division (PCs, workstations, and autonomous vehicles) generated $7.200 billion, up 27% year-over-year, although consumer PC sales were tempered by rising memory prices.
Market reaction and outlook
NVIDIA shares fell 1,5% in regular trading on Wednesday but surged 4% in after-hours trading to $220 following comments from CEO Jensen Huang. Huang stated that "AI has reached its tipping point" and that "computing is generating revenue." The company raised its third-quarter revenue forecast to $108.000 billion, well above the consensus estimate of $104.000 billion, with a projected gross margin of 74%.
Huang highlighted that demand is accelerating not only due to the impetus of large AI labs, but also because of the emergence of new companies, startups, and an open-model ecosystem already operating in parallel at a large scale, in addition to the rise of physical AI. The Vera Rubin platform is already in full production and has been designed to support this period of widespread demand.
Risks and challenges
Despite the positive results, concerns remain about circular financing and multi-billion dollar commitments. NVIDIA has secured guarantees of up to $105.000 billion to back a massive data center complex in Ohio that will house infrastructure for OpenAI, and has issued $25.000 billion in bonds, raising its long-term debt from $7.500 billion to over $32.000 billion. Morgan Stanley analysts warn of increasing competition and a potential slowdown in AI spending.
The company has secured approximately $500.000 billion in funding for AI infrastructure with asset managers such as Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR. This move illustrates the extent to which NVIDIA has transitioned from being a supplier to also becoming a financier and guarantor for its own customers, adding a layer of shared risk should demand cool sooner than anticipated.
With these results, NVIDIA demonstrates that the AI ​​investment cycle remains strong. The company has once again exceeded expectations and raised the bar for the next quarter. However, the market is increasingly demanding, and the question is no longer whether NVIDIA can continue to grow, but for how long it can do so at the current pace. Analysts maintain an average price target of $301,82, representing a 40% upside potential from current levels, and 96,3% of firms recommend buying.