NVIDIA reported fiscal 2027 second-quarter revenue of $96.22 billion on Aug. 27, up more than 100% from a year earlier and above the $92.17 billion market estimate compiled by LSEG.
For the three months ended July 26, adjusted earnings per share reached $2.22, beating expectations of $2.10. Data center revenue, the company’s core business, also more than doubled to $89 billion, ahead of the $85.08 billion forecast.
Third-quarter revenue outlook tops estimates
NVIDIA expects third-quarter revenue of $108 billion, plus or minus 2%, above analysts’ average estimate of $104.19 billion.
Its adjusted gross margin is projected at 74%, plus or minus 0.5 percentage point, below the market expectation of 74.77%. The market is watching how the Rubin chip production ramp and rising memory chip prices could affect margins.
AWS partnership expansion
The company also said it expects revenue in fiscal 2028 to grow by about 70% and announced a broader partnership with Amazon Web Services, or AWS.
NVIDIA Chief Financial Officer Colette Kress said the two companies will deploy an additional 2 million NVIDIA GPUs across Amazon’s global infrastructure during 2027 and 2028.
China sales and AI chip opportunity
NVIDIA said the revenue opportunity for its AI chips before 2027 could exceed $1 trillion, double its previous estimate of a $500 billion market opportunity for Blackwell and Rubin chips before 2026.
The company said its third-quarter guidance does not include any data center chip sales from China. The U.S. government approved about 10 Chinese companies, including Alibaba, Tencent and ByteDance, to buy H200 chips in May this year, but deliveries then stalled for several months. A U.S. Commerce Department official said last month that shipments had started, but volumes remained 「very small」.
In June, NVIDIA also began pitching its Vera CPU to customers in China and said the product could be available as early as August.
Shares rose in after-hours trading
According to BIT (bit.com) market data, NVIDIA shares turned higher by more than 4% in after-hours trading after the earnings release. As of Wednesday’s close, the company’s market capitalization was about $5.16 trillion, and the stock was up 12.4% for the year.
NVIDIA has beaten Wall Street revenue estimates for the past 15 quarters, though the size of those beats has been narrowing.