Nvidia reports $89B data center revenue, guides Q3 to $108B

Nvidia shares fell 1.45% in after hours trading on Wednesday despite another quarter of rapid AI driven growth, with revenue more than doubling from a year earlier.

The chipmaker reported second quarter fiscal 2027 revenue of $96.2 billion, up 18% from the previous quarter and 106% year over year. GAAP earnings reached $2.46 per diluted share, while adjusted earnings came in at $2.22 per share.

GAAP net income rose 126% from a year earlier to $59.7 billion, while operating income increased 124% to $63.7 billion. Gross margin reached 75%, up from 72.4% in the same quarter last year.

Nvidia’s Data Center business remained the main growth engine. Revenue from the division reached $89 billion, up 18% from the previous quarter and 117% from a year earlier.

The company said its Vera Rubin platform is ramping into full production, with systems running at partners including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure and Nebius. Nvidia also introduced its Vera CPU for AI agents and said its Groq 3 LPX inference accelerator has entered full production.

CEO Jensen Huang said AI infrastructure demand continues to accelerate as more frontier labs, startups and open model developers expand their computing needs. He said the AI infrastructure buildout is operating at “full steam.”

For the third quarter, Nvidia expects revenue of $108 billion, plus or minus 2%. The company expects gross margin of about 74% and said the outlook assumes no Data Center compute revenue from China.

Nvidia also continued returning significant capital to investors. The company spent roughly $26 billion on share repurchases and dividends during the quarter and had about $99 billion remaining under its share repurchase authorization.

Free cash flow reached $21.3 billion during the quarter, compared with $13.45 billion in the same period a year earlier.

The company has also been expanding its role in the broader AI infrastructure buildout. Nvidia announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR aimed at mobilizing more than $500 billion in third party capital for AI infrastructure over time. It also said SpaceXAI plans to deploy Nvidia Vera CPUs for its next generation of agentic AI applications.

The results underscored continued explosive demand for Nvidia’s AI infrastructure, though the 1.45% after hours decline suggested investors were looking beyond headline growth following the company’s massive run.

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