Nvidia earnings shift investor focus to Rubin ramp, margin pressure and the durability of AI demand
Nvidia’s fiscal 2027 second-quarter results delivered another massive growth quarter, but the post-earnings debate quickly moved beyond whether the company beat expectations. Revenue reached $96.2 billion, up 106% year over year, while data center revenue climbed 117% to $89 billion. Management also said Vera Rubin has entered full production, placing the next platform transition at the center of the market’s attention. Investors are now weighing a different set of questions. Can Rubin extend the growth cycle established by Blackwell? Can Nvidia hold onto unusually high profitability as memory and broader system costs rise? And how should the market treat China when Nvidia’s fiscal third-quarter revenue outlook of about $108 billion, plus or minus 2%, excludes China data center compute revenue? Margins have become a closely watched signal. Non-GAAP gross margin was 75.0% in the second quarter, and Nvidia expects roughly 74.0% in the third quarter, plus or minus 50 basis points. Reuters also reported that higher memory and component costs could push gross margin to about 71%–72% in the fourth quarter. For chip investors, the report also carries read-through for AI servers, HBM, networking, optical interconnects, advanced packaging, and broader data center infrastructure.








