Nvidia reports 117% year-on-year growth in data center revenue

Nvidia just turned in a quarter that makes its already absurd growth trajectory look restrained by comparison. The company reported $89.0 billion in data center revenue for fiscal Q2 2027, a 117% increase from the same period a year earlier. Total revenue hit $96.2 billion, up 106% year-over-year, meaning the data center business alone accounted for roughly 93% of the entire company’s sales.

To put that $89 billion figure in perspective: five years ago, Nvidia’s quarterly data center revenue was around $1 billion. The segment has grown roughly 89x in that span.

The numbers behind the numbers

Beyond the headline data center figure, Nvidia’s overall financial performance was equally striking. The $96.2 billion in total quarterly revenue represented an 18% sequential increase from Q1, when the company posted $75.2 billion in data center revenue alone (which was itself up 92% year-over-year at the time).

GAAP diluted earnings per share came in at $2.46, a 128% jump compared to the year-ago quarter.

And Nvidia isn’t signaling any slowdown. The company guided Q3 FY2027 revenue at $108.0 billion, plus or minus 2%, with gross margins expected to land around 74.0%.

CEO Jensen Huang framed the results around what he described as an inflection point for AI. In his telling, the technology’s utility has been clearly established, and compute resources have shifted from a cost center to a significant revenue generator for Nvidia’s customers.

Who’s buying all these chips

The customer list reads like a who’s who of cloud computing. CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Nebius are all deploying Nvidia’s Blackwell platform, the company’s latest generation of AI accelerators.

What the guidance tells us

The $108 billion Q3 revenue guide deserves close attention. It implies Nvidia expects sequential growth to continue, moving from an 18% quarter-over-quarter increase in Q2 to potentially more than 12% in Q3.

The 74% gross margin target for next quarter indicates that pricing pressure from competitors remains minimal. AMD’s MI300 series and various custom silicon efforts have generated headlines but haven’t forced Nvidia into the kind of margin compression that would signal a competitive threat.

The ripple effects extend beyond Nvidia itself. Taiwan Semiconductor Manufacturing Company, which fabricates Nvidia’s chips, sees its own advanced packaging and leading-edge node capacity increasingly tied to Nvidia’s production schedule.

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