"We see Vera Rubin accounting for about 20% of data center revenue in Q3," said Colette Kress, chief financial officer at Nvidia, during the company's earnings conference call with financial analysts and investors. "Having already received purchase orders from every major hyperscaler, AI cloud, and system OEM, we expect Vera Rubin to mark the fastest product ramp in Nvidia's history."
Data center revenue has accounted for around 92% of Nvidia's quarterly sales in recent quarters, so as long as Nvidia meets its $108 billion earnings projection in Q3, its data center revenue will reach around $99.36 billion, meaning that sales of its Vera Rubin platform hardware will be around $19.872 billion.
Nvidia began to ramp up production of Vera Rubin components — that include Vera CPUs, Rubin GPUs, BlueField 4 DPUs, and other units — this spring and commenced first revenue shipments of actual VR200 NVL72 racks in August, with Microsoft being the first to deploy commercial systems (at least according to Satya Nadella).
Normally, companies ramp up production and sales of their data center platforms for several quarters. Ramping up a data center platform from effectively no production revenue in Q2 FY2027 to 20% of revenue ($20 billion in this case) in just one quarter is a record not only for Nvidia, but perhaps for the whole industry, given Nvidia's scale. However, there is a catch: actual unit shipments do not look truly breakthrough.
Nvidia revenue tops $96 billion as memory commitments soar to $160 billion
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/nvidia-expects-to-sell-usd20-billion-worth-of-vera-rubin-hardware-this-quarter-would-account-for-20-percent-of-data-center-revenue-its-fastest-ramp-in-company-history#main
- https://www.tomshardware.com/membership
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Informational only. No financial advice. Do your own research.