For the second quarter of Nvidia's FY2027, which ended on July 26, 2026, the company's GAAP revenue hit a record $96.221 billion, up 18% quarter-over-quarter (QoQ) and 106% compared to the same quarter a year ago. Nvidia's net income totaled $59.688 billion, up 126% year-over-year (YoY), as its gross margin reached 75.0%. Sales of Nvidia's Compute & Networking hardware reached $88.299 billion, up 18% sequentially and 114% YoY, whereas sales of its graphics hardware hit $7.922 billion, up 12% sequentially and 46% year-over-year.
"AI has reached its inflection point," said Jensen Huang, founder and CEO of Nvidia. "AI is doing useful work. Its tokens are productive and profitable. Now, compute is revenue. And demand is accelerating. […] We have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online […]. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment."
Nvidia's results were driven by sales of its data center-grade AI hardware as various customers bought $89.023 billion worth of equipment, an increase of 18% sequentially and a rise of 117% compared to the same quarter a year ago. Hyperscalers purchased $48.710 billion worth of hardware from Nvidia (up 102% YoY and 13% QoQ), while revenue from AI Clouds, Industrial and Enterprise climbed to $40.313 billion (up 138% YoY and 25% QoQ), an indicator that while hyperscalers still purchase more equipment from Nvidia, the ACIE segment is growing faster. Sales of Nvidia's Edge Computing products were $7.198 billion (up 27% YoY and 13% QoQ), which means that sales of graphics products for PCs were strong despite shortages of GPUs and memory.
Nvidia expects demand for its products to remain strong in the coming years. To meet that demand, the company increased its long-term purchase commitments from $119 billion in Q1 FY2027 to $279 billion in the second quarter. Typically, Nvidia's long-term supply commitments included pre-payments and commitments for wafer processing and advanced packaging at TSMC, as well as for HBM memory made by DRAM makers. This time around, Nvidia explicitly says that the bulk of the commitments are 'primarily related to the procurement of memory.'
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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/big-tech/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/big-tech/nvidia-revenue-tops-usd96-billion-as-memory-commitments-soar-to-usd160-billion-ceo-jensen-huang-says-ai-has-reached-its-inflection-point#main
- https://www.tomshardware.com/membership
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