Nvidia Crushes Expectations with Record Revenue, Hyperscaler Commitments

Nvidia's second-quarter earnings report has exceeded expectations, with revenue more than doubling year-over-year to $96 billion. CFO Colette Kress guided Nvidia's fiscal 2028 revenue to roughly 70% growth, implying nearly $700 billion in annual revenue, over 10% higher than most analysts expected.

CEO Jensen Huang stated that demand is much greater than what they can supply, and the commitments from hyperscalers driving Nvidia's revenue outlook are impressive. The top five hyperscalers are expected to increase capital spending from $800 billion this year to $1.3 trillion in 2027, with commitments for Nvidia chips more than doubling sequentially.

Gross margins held at 75% for a second straight quarter, but Kress warned they will compress to 71-72% by Q4 due to memory scarcity driven by the massive AI buildout.