Nvidia has reported revenue of $96.2bn for its second fiscal quarter of 2027, up 18% from the previous quarter and 106% from a year ago. It posted datacentre revenue of $89bn, an 18% increase from the same quarter last year.
“AI [artificial intelligence] has reached its inflection point,” said Jensen Huang, founder and CEO of Nvidia. “It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”
He said demand for AI hardware is accelerating. “This time last year, one lab alone was driving the buildout; today, 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,” said Huang.
The Nvidia CEO admitted the company was facing supply constraints, and when asked how it plans to build out capacity to meet demand for graphics processing units (GPUs), he said: “Our entire supply chain is challenged and it’s everybody, everybody is really running flat out.”
Huang said that to meet this demand, more capacity would be brought online continuously. “It’s not going to come online in just an instant in time, but it’s going to come online every day,” he said. “Yields are going to get improved and we’re going to work hard with every one of our suppliers.”
However, Huang said Nvidia can only meet 70% of the supply it needs to fulfil customer orders. “Our demand is much higher than that,” he added. “And we’ve got to work hard or we’re going to be disappointing customers.”
To avoid a growing customer backlog where organisations have to hold back AI infrastructure investment until GPUs are shipped, Huang said: “I’m going to need the help of the entire supply chain to help me out here,” referring to the order backlog, which limits the volume of GPUs it can ship to customers.
In the company’s prepared remarks for the quarterly earnings call, Huang said Nvidia has continued to make strategic commitments across its supply, infrastructure and partner ecosystems to capitalise on the substantial growth opportunities it expects.
“We’ve partnered with our extensive network of suppliers to secure the critical components needed to meet demand for the next several years,” he said. “Our commitments increased from $119bn last quarter to $279bn, primarily related to the procurement of memory.”
What is significant about Nvidia’s latest results is that Taiwan Semiconductor Manufacturing Company (TSMC), the firm that physically produces Nvidia’s chips, generated $88.3bn across the whole of 2024. Nvidia matched that in three months.
Nigel Green, CEO of financial advisory giant DeVere Group, described Nvidia’s growth as “exceptional”. “One company produced more revenue in a single quarter than its own chip manufacturer produced in an entire year,” he said. “A growth rate of 106% at this size doesn’t happen by accident, and it rarely happens at all.
“Companies typically grow fast or grow big. Doing both at once, at this pace and this scale, is exceptionally rare.”
Commenting on the Nvidia results, Forrester principal analyst Naveen Chhabra said: “For enterprise technology buyers, the most important message is that AI infrastructure demand is still accelerating, but supply constraints, ecosystem lock-in, and ROI pressure are becoming the dominant strategic issues. Nvidia’s results suggest that the AI infrastructure market is entering a new phase where enterprises must focus less on acquiring GPUs and more on extracting measurable business value from AI investments.”
