Nvidia smashes Q2 forecasts with $96.2bn in revenue as AI hits 'inflection point'
The chipmaker's data centre revenue surged 117% to $89 billion as it guided next quarter revenue to $108 billion, both above Wall Street expectations, without counting sales to China.
Nvidia reported a more than doubling of its quarterly revenue from a year ago, thanks to a surge in demand for AI-related hardware. The world's largest company also provided current quarter revenue guidance that significantly outperformed expectations. Although the stock experienced a slight pullback following the earnings release, it ultimately saw a slight increase.
Industry strategist Steve Sosnick proposed two theories for the lackluster investor reaction: the first that investors have grown accustomed to Nvidia beating expectations and the second that most investors are already fully invested in the company. Nvidia's rise to dominance in the AI hardware market is attributed to its cutting-edge GPUs that power AI technology, which have become a crucial component in the industry.
For the first quarter of 2027, Nvidia generated $96.22 billion in revenue, resulting in an adjusted profit of $2.22 per share. Analysts had anticipated adjusted earnings of $2.08 per share on $91.90 billion in revenue. The company's revenue from data centers, its most significant segment, increased 117% year-over-year to $89.02 billion.
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