Nvidia Posts Stellar Q2 Earnings with 70% Revenue Growth Forecast
Nvidia released its fiscal Q2 2027 earnings last week, and the company's quarterly performance was stellar. The stock fell 4.57% on Friday and now trades only slightly above its pre-earnings levels. Nvidia hit its record highs in May, but the stock has since failed to breach that level.
The Data Center segment, which sells highly sought-after artificial intelligence (AI) chips, accounted for $89 billion of Nvidia's Q2 revenues. The company started reporting its data center segment into two sub-markets: Hyperscale and AI Clouds, Industrial, and Enterprise (ACIE). While hyperscalers remain a key driver, ACIE revenues rose to $40 billion, outpacing hyperscalers.
Nvidia expects revenues to rise to $108 billion in the current quarter, with a divergence of 2% on either side. The company forecasted 70% revenue growth in the next fiscal year, far exceeding analyst expectations. Nvidia's guidance for the next fiscal year was ahead of its peers, and management stressed that if not for supply constraints, revenues would double next year.