Nvidia shares rally after Q2 revenue doubles, topping estimates

Nvidia ↗ 0.90% reported fiscal second-quarter 2027 results on Wednesday that topped Wall Street expectations on every key metric, posting revenue of $96.2 billion — a 106% increase from a year ago — and adjusted earnings per share of $2.22 against consensus estimates of roughly $2.09 per share on $92 billion in revenue.investing+1

Shares initially slipped roughly 1.5% in after-hours trading before rallying about 4% after CEO Jensen Huang spoke on the conference call and declared that AI had reached an inflection point. "The AI infrastructure buildout is at full steam," Huang said. "Vera Rubin, now in full production, was built to power exactly this moment".reuters+1

Guidance and Growth Forecast

For the current quarter, Nvidia guided revenue to $108 billion, plus or minus 2%, ahead of the analyst consensus of approximately $104-$105 billion. The company also forecast approximately 70% revenue growth for fiscal 2028. "The surge in AI demand is driving a global infrastructure buildout, supported by an expanding and diverse set of growth opportunities spanning hyperscalers, AI labs, AI-native enterprises, and sovereign customers," CFO Colette Kress said during the earnings call.tradingkey+2

Notably, the Q3 outlook assumes no Data Center compute revenue from China due to ongoing trade restrictions.investing+1

Data Center Dominance and AWS Deal

Nvidia's data center division drove the bulk of results, contributing $89 billion in revenue — up 117% year-over-year — against estimates of roughly $85.8 billion. Hyperscale cloud revenue reached $48.71 billion, doubling from a year earlier.beincrypto+2

Alongside earnings, Nvidia and Amazon Web Services Amazon.com, Inc. ↗ 1.61% announced a major expansion of their partnership, committing to deploy two million additional next-generation GPUs across AWS's global infrastructure between 2027 and 2028.stocktwits

Market Reaction

The initial after-hours decline continued a pattern: Nvidia has now seen its stock retreat following each of its previous four quarterly earnings releases, even when beating estimates. Options markets had priced in a roughly 5.4% swing in either direction, below the 6.5% move implied ahead of its May report.investing+1

"The challenge for Nvidia isn't delivering good numbers anymore, it's delivering better than the great numbers investors already expect," said Seth Hickle, chief investment officer at Mindset Wealth Management, according to Reuters. "In this case, beating Wall Street estimates is almost the price of admission."reuters