Nvidia's Revenue Doubles, Forecasts AI Chip Growth Amidst Supply Commitments
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Nvidia’s quarterly revenue more than doubled and the chipmaker forecast third-quarter revenue above Wall Street estimates on Wednesday, signaling persistent demand for its AI chips.
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FortuneNvidia doubled its revenue and profit year-over-year in its second quarter, and forecast sales in the current quarter that topped analyst estimates, as red-hot demand for its AI chips continues to bolster the company’s fortunes.
CNBCCheck out the companies making headlines in after-hour trading. Nvidia — The artificial intelligence darling rose 4% after beating expectations on both lines in the second quarter and reporting that revenue more than doubled. Nvidia earned $2.22 per share after adjustments and $96.22 billion in revenue against analyst consensus estimates of $2.10 per share and $92.17 billion in revenue, according to LSEG. The company expects revenue to rise to $108 billion in the third quarter, also higher than expected. Salesforce — The maker of customer relationship management software soared 12% postmarket after reporting second-quarter revenue of $11.35 billion versus a consensus estimate among analysts of $11.32 billion, according to LSEG data.
MarketWatchNvidia’s quarterly earnings announcement has been a major stock-market event ever since the artificial-intelligence boom began in earnest with the introduction of ChatGPT in late 2022.
BBC BusinessThe revenue figures beat Wall Street's expectations, leading Nvidia shares to rise about 4% in after hours trading.
Financial TimesNvidia sales more than double to $96bn on bumper AI demand Chip giant’s data centre division grew 117% as clients race for computing power
ZeroHedgeCommenting on the quarter, CEO Jensen Huang said that “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue. And demand 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 — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”
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Another concern, and a reason why the stock is dumping: Nvidia’s future supply commitments have more than doubled in a single quarter, jumping to $279 billion from $119 billion. The reason, as Bloomberg notes, is striking: Nvidia says the increase is primarily related to securing memory. These aren’t costs already incurred, but commitments to suppliers to lock in the components and capacity needed to meet AI demand over the next several years. Nvidia has $92 billion committed for the rest of this fiscal year, $87 billion for FY28 and $88 billion for FY29
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FortuneKress, in her CFO commentary, said supply and capacity commitments surged from $119 billion to $279 billion, driven by rising memory costs, a persistent boogeyman that has been behind rising prices all around the tech sector. During the call, Kress clarified further that the magnitude of memory prices led Nvidia to reset expectations, given the higher prices expected next year, said Kress.
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Nvidia expects revenue to grow by about 70% in fiscal 2028. VCG via Getty Images
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FortuneThe 70% preliminary expectation wildly exceeded projections for fiscal 2028 revenue of roughly $570 billion, or 44% growth from fiscal 2027 (the current year). Nvidia’s projected growth, applied to fiscal 2027 revenue and expected revenue, would imply fiscal 2028 revenue in the range of $690 billion to $700 billion, more than $100 billion over the $570 billion analysts had been modeling.
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Results from Nvidia, one of the world’s most valuable firms, are considered a bellwether for the AI market as its chips power most of the major data centers and advanced AI models globally.
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BBC BusinessWith around 40% of the US stock market concentrated in ten companies heavily invested in AI, Nvidia's fortunes matter far beyond Silicon Valley.
Fortune‘We see it differently’ While the booming demand for AI chips has made Nvidia the world’s most valuable company, with a market cap of more than $5 trillion, critics have warned about the company’s spate of investments in other companies within the AI industry, from data center operators to frontier model makers like Anthropic. Many view the deals, which Nvidia is financing from its massive cash pile, as creating dangerous interdependencies with the AI business.
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There is also mounting scrutiny of Nvidia’s role in the AI boom’s complex financing ecosystem after the company agreed to guarantee some deals under a new tie-up with six major financial institutions, which aims to raise more than $500 billion for AI infrastructure.
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FortuneStill, Nvidia’s involvement has been critical and substantial and, moreover, has led to a drag on the stock price. The company disclosed maximum gross guarantee exposure of $108.5 billion, which mostly stems from credit support for SB Energy’s Ohio tech campus, which will host Nvidia compute leased to OpenAI. The rest is due to $3.5 billion backing lease obligations for AI cloud partners. Nvidia has also publicized investments of nearly $50 billion in frontier AI labs and has partnered with private equity giants Apollo, BlackRock, Blackstone, Goldman Sachs, and KKR to raise more than $500 billion in third-party capital for AI infrastructure.
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Revenue in the three months ended July 26 totaled $96.2 billion, up 18% over last quarter and 106% from the year-ago period, the company reported Wednesday—crushing analyst estimates of $92.2 billion. For the quarter currently underway, Nvidia guided to revenue of $91 billion plus or minus 2%, outpacing the average analyst expectation of $103.9 billion.
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New York Post BusinessNvidia forecast third-quarter revenue of $108 billion, plus or minus 2%, compared with analysts' average estimate of $104.19 billion, according to data compiled by LSEG. REUTERS
7 details only one outlet reported
Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 ZeroHedge In our preview of NVDA earnings we said that "Nvidia will beat FQ2 (July) revenue estimates by approximately $3-4 billion, with revenue potentially reaching $94-95 bn. The stock, however, will not respond to the beat.... recall revenue guidance has beaten Street consensus by an average of 4% over the past four quarters, while the stock has traded down 3%/5% on average over the subsequent 7/30 days." And boy were we right: despite blowout beats on the top and bottom line, the stock is sliding after hours, in what will be the 6th of the past 7 earnings reports the stock has tumbled despite beating bigly.
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02 Bloomberg Tech Stocks Rise on Nvidia's Outlook; BOK Hikes Rates | The Asia Trade 8/27/2026 "Bloomberg: The Asia Trade" brings you everything you need to know to get ahead as the trading day begins in Asia. Bloomberg TV is live from Tokyo and Sydney with Shery Ahn and Haidi Stroud-Watts, getting insight and analysis from newsmakers and industry leaders on the biggest stories shaping global markets. (Source: Bloomberg)
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03 Fortune “We wanted to make sure that everybody has the same set of information,” CEO Jensen Huang said on a conference call Wednesday. “We’ve got a huge year coming up next year, and it’s going to be pretty extraordinary.”
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04 CNBC Stock futures are higher Wednesday night as investors parsed the latest earnings reports from Nvidia and other well-known technology companies.
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05 MarketWatch Market Extra Options traders are betting on the quietest Nvidia earnings reaction in years. It could be an opportunity for AI bulls.
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06 BBC Business The company said on Wednesday it brought in $96bn (£71bn) in revenue during the second quarter, more than double from a year ago. And it expects revenue of $108bn next quarter.
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07 New York Post Business The pair will deploy an additional 2 million Nvidia GPUs across Amazon’s global infrastructure in 2027 and 2028, Nvidia finance chief Colette Kress said on an earnings call.
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