Nvidia, holding a market capitalization of $5.16 trillion, released its second-quarter earnings report, announcing a historic $96.2 billion in revenue. This figure represents a 106% increase year-over-year, surpassing Wall Street estimates of $92.3 billion.
For the quarter, Nvidia posted adjusted earnings of $2.22 per share, exceeding analysts' expectations of $2.09 per share. CEO Jensen Huang highlighted strong artificial intelligence momentum in the United States and globally, pointing to the company's Vera Rubin frontier AI supercomputer model.
Growth Drivers and Projections
The primary growth catalysts for the company were heightened demand for graphics processing units and data centers. Data center revenue increased by 117% to reach $89 billion, bolstered by Amazon Web Services committing to purchase 2 million next-generation GPUs.
Looking ahead, Nvidia projects 70% revenue growth for the full fiscal year 2028. For the upcoming third quarter, the firm anticipates $108 billion in revenue.
Stock Performance and Challenges
Following the earnings announcement, Nvidia stock (NASDAQ: NVDA) initially fell by 4% before recovering and surging 4.7% in after-hours trading to $219.53.
Despite the positive financial results, the company noted potential overhead challenges. Server production costs could increase alongside rising global memory chip prices, with DRAM expected to surge by 260% over the year.
