Nvidia Reports Record Q2 Revenue and Projects 70% Growth
Nvidia reported record second-quarter revenue of $96.2 billion and issued a rare long-term forecast projecting 70% revenue growth for fiscal 2028.
Nvidia Corporation reported record fiscal second-quarter revenue of $96.2 billion on August 26, 2026, a 106% increase year-over-year. The company's data center division drove the majority of this growth, generating $89 billion in revenue. In an unprecedented move, the company provided a long-term forecast projecting 70% revenue growth for fiscal 2028, significantly exceeding the 44% to 45% consensus modeled by Wall Street analysts.
CEO Jensen Huang characterized the current era as a "golden age" of AI, stating that the technology has reached an "inflection point" where compute is now generating revenue. Despite the record results, the company warned that growth is limited by supply chain bottlenecks, particularly a global memory crunch. Consequently, gross margins are projected to dip from 75% in the second quarter to a trough of 71% to 72% by the fourth quarter of fiscal 2027.
To sustain demand and diversify its customer base beyond major hyperscalers, Nvidia has aggressively expanded into AI infrastructure financing. This includes a $500 billion partnership with financial firms such as BlackRock and Goldman Sachs to treat GPUs as a financeable asset class, and a $105 billion guarantee for an OpenAI-leased data center in Ohio. While some critics warn of "circular financing" risks, CFO Colette Kress defended the strategy as a means to support capital-intensive AI startups.
Following the report, Nvidia's market valuation surged, adding hundreds of billions of dollars in a single day. The company also announced a deal with Amazon to deploy 2 million additional GPUs through 2028 and began full production of its next-generation Vera Rubin platform.
