Nvidia Reports Record $96 Billion Revenue and Launches Vera CPU

Nvidia Corporation reported record second-quarter fiscal 2027 revenue of $96.2 billion, a 106% increase year-over-year, driven by a surge in AI infrastructure spending. The company's data center segment generated $89 billion, representing 92.5% of total revenue. Management provided a third-quarter revenue guide of $108 billion and projected approximately 70% year-on-year growth for fiscal 2028, though it noted the outlook remains supply-constrained.

In August 2026, the company began production shipments of its Vera Rubin platform, which includes Nvidia's first stand-alone server CPU designed for agentic AI. The first Vera CPU server was delivered to Amazon Web Services in Seattle. Nvidia expects stand-alone CPU revenue to reach $20 billion in fiscal 2027 and more than double in fiscal 2028, directly challenging incumbents like Intel and AMD.

Despite the growth, Chief Financial Officer Colette Kress warned that gross margins will decline from 75% to a bottom of 71% to 72% by the fourth quarter. This compression is attributed to extreme pricing conditions and shortages in high bandwidth memory. To sustain its trajectory, Nvidia has expanded its equity investments to $99 billion, including a $30 billion commitment to OpenAI and the $12.93 billion acquisition of Hugging Face.

To return value to shareholders, the company implemented a 2400% dividend increase. However, the company has excluded China data center compute revenue from its forward outlook due to U.S. export restrictions and geopolitical uncertainty.