Nvidia Crushes Earnings Targets with 106% Revenue Growth
Nvidia's second-quarter earnings report for its 2027 fiscal year delivered impressive results, surpassing Wall Street analyst targets. The company reported non-GAAP earnings per share of $2.22 on sales of $96.22 billion, significantly higher than the predicted $2.10 per share and $92.17 billion in sales.
Nvidia's CEO, Jensen Huang, emphasized the company's strong operating outlook during a conference call with investors. He noted that the company expected sales growth to reach 70% in the next fiscal year, exceeding analysts' predictions of 44% growth.
Huang also highlighted Nvidia's gross margins, which he expects to improve after bottoming out at 71-72% in the fourth quarter of the current fiscal year. This reflects the company's pricing power and ability to maintain high revenue despite supply constraints.
The CEO expressed optimism about Nvidia's Vera Rubin platform, stating that it will have the fastest product ramp in the company's history. He also mentioned significant opportunities for growth in AI compute stacks with the Blackwell family of processors and the Vera Rubin family.