Nvidia Reports 106% Revenue Growth and Expands Buybacks
Nvidia reported second-quarter revenue of $96.2 billion and added $150 billion to its share repurchase authorization amid surging AI chip demand.
Nvidia Inc. reported a 106% year-over-year revenue increase to $96.2 billion for the fiscal second quarter of 2027, with non-GAAP earnings per share rising 120% to $2.22. The company provided guidance for fiscal third-quarter revenue of approximately $108 billion and expects overall revenue to grow by about 70% in fiscal 2028.
To support shareholder value, the board added $150 billion to its share repurchase authorization, increasing the total available for buybacks to $235 billion. Chief Financial Officer Colette Kress noted that current growth is limited by chip production capacity rather than demand, stating that customer forecasts suggest growth could double next year. However, the company expects gross margins to decline from 75% to between 72% and 73% for fiscal 2028 due to rising memory costs.
Future growth is tied to AI hyperscalers, whose data center spending is forecasted to rise from nearly $800 billion this year to $1.3 trillion next year. While the stock has risen approximately 21% in 2026, analysts suggest the market has not yet priced in 2027 expectations. Current valuations place the stock at 28 times trailing earnings, which could drop to 14 if fiscal 2028 projections are met.
