Nvidia Reports Record $96.2 Billion Q2 Revenue

Nvidia Corporation reported record second-quarter revenue of $96.2 billion and net income of $59.7 billion, surpassing Wall Street estimates of approximately $92 billion. The company's data center division drove this growth, generating $89 billion in revenue, a 117% increase year-over-year. Despite these results and a bullish third-quarter revenue forecast of $108 billion, shares fell approximately 1% in after-hours trading as investors expressed skepticism regarding a potential AI market bubble.

To sustain demand amid rising borrowing costs, the company partnered with six financial firms—including BlackRock, Goldman Sachs, and Apollo Global Management—to establish compute financing platforms. This initiative aims to mobilize over $500 billion in third-party capital by treating AI chips as a financeable asset class. Additionally, the company committed up to $105 billion to support an 8-gigawatt data center campus in Ohio leased by OpenAI. These moves drew criticism from some investors, including Michael Burry, who characterized the financing as a sign of desperation.

CEO Jensen Huang stated that the AI infrastructure build-out is at "full steam" and that the industry has reached an "inflection point" where compute is now generating revenue. The company has entered full production of its Vera Rubin platform and secured a deal with Amazon.com to provide 2 million GPUs for deployment in 2027 and 2028. However, the company faces headwinds from rising memory costs, restricted access to the Chinese market, and competition from customers like OpenAI developing in-house processors.