Nvidia posts Q2 surge, lifts long-term outlook

Nvidia (NVDA) reported fiscal second-quarter revenue of $96.22 billion, reflecting continued momentum in its core businesses. Adjusted earnings came in at $2.22 per share, underscoring the profitability of its AI-focused product portfolio. The company also recorded an adjusted gross margin of 75%, indicating strong pricing power and cost discipline during the period.

The Data Center segment was the primary growth engine, generating $89.0 billion in revenue for the quarter. This performance highlights sustained demand for Nvidia’s (NVDA) chips used in artificial intelligence and high-performance computing infrastructure. Data-center results now dominate the company’s revenue mix, shaping both its near-term guidance and longer-term growth plans.

For the current fiscal third quarter, Nvidia guided revenue to about $108 billion, plus or minus 2%. This outlook signals that management expects demand trends to remain strong in the coming months, particularly in data-center deployments. The guidance range provides investors with a benchmark for how the company sees orders and supply aligning in the short term.

Management commentary emphasized that guidance and performance are being framed against an environment of intense interest in AI infrastructure. Investors and analysts are closely watching these figures for indications of how sustainable recent growth may be, especially as Nvidia’s results increasingly influence broader technology and equity markets.

Looking further ahead, Nvidia projected that its revenue will grow by approximately 70% in fiscal 2028. The company characterized this multi-year outlook as supply-constrained, signaling that it expects demand to outstrip available capacity. This framing suggests that the pace of growth is being set by manufacturing and component availability rather than a lack of customer interest.

By describing the fiscal 2028 outlook in this way, management underscored the scale of anticipated AI and compute workloads over the next several years. The company’s internal planning assumes that it will continue to ramp production and capacity, while still not fully meeting potential demand based on current visibility.

In outlining its near-term expectations, Nvidia stated that it is not assuming any China data-center compute revenue in its outlook. This choice effectively removes a potentially significant geography from the company’s forward baseline. It reflects a planning stance in which other regions are expected to drive the guided revenue trajectory.

By excluding China data-center compute contributions from its near-term assumptions, Nvidia presented a guidance framework that leans on demand in other markets. This approach may provide some buffer against regional policy or regulatory uncertainties, while still supporting the elevated revenue targets for the coming quarters and the fiscal 2028 horizon.