Nvidia reported fiscal Q2 2027 revenue of $96.2 billion, up 106% year-over-year, after market close Wednesday. Data Center hit $89.0 billion, +117% YoY. Gross margin held at 75%. Q3 guidance came in at $108 billion — $3.8 billion above consensus at $104.2B. CEO Jensen Huang forecast 70% fiscal 2028 revenue growth, far above estimates. Guidance explicitly excluded any data center sales to China.
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Core Beat Metrics
Q2 GAAP EPS $2.46, non-GAAP EPS $2.22, both beat estimates. Data Center at $89B represents 93% of total revenue — Nvidia is now effectively a pure-play AI infrastructure company. Gaming and PC GPU grew modestly; Blackwell supply constraints partially eased per supply chain checks.
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China Zero — Strategic Read
Q3 guidance excludes China data center revenue. Yet $89B in Q2 data center sales shows US, Europe, Middle East, and India have fully absorbed China's absence. Saudi Arabia and UAE AI capex commitments exceeded $20B combined this quarter. The export ban is redirecting capital flows to US-allied infrastructure — not slowing Nvidia.
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Competition: OpenAI Chip Same Day
The same day, OpenAI announced Jalapeño custom inference chip outperformed Blackwell on AI work per watt. Long-term, hyperscaler in-house silicon is Nvidia's only structural risk. Near-term training demand — not inference — remains Nvidia's moat. Jalapeño targets inference workloads only; training clusters remain fully Nvidia-dependent.
Guidance ex-China still crushed consensus. The AI capex cycle has not peaked.
Sources
- ✓ CNBC — Nvidia tops earnings estimates, guides to $108 billion in revenue next quarter — Aug 26 2026
- ✓ Kiplinger — Nvidia Earnings Live Updates and Commentary August 2026 — Aug 26 2026
- ✓ CoinDesk — Nvidia tops earnings estimates, guides to $108 billion next quarter — Aug 26 2026
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