NVIDIA Corporation (NVDA) reports a strong second-quarter fiscal 2027 non-GAAP gross margin of 75%, but anticipates a decline in the coming quarters due to rising memory costs. The company forecasts a third-quarter gross margin of 74% and expects it to drop to 71%-72% by the fourth quarter before rebounding to 72%-73% in fiscal 2028. Revenues surged 106% year over year to $96.2 billion, with Data Center revenues rising 117% to $89 billion.
NVIDIA’s supply commitments have increased to $279 billion, primarily for memory procurement, as the company collaborates with major suppliers such as Micron Technology, SK Hynix, and Samsung. The demand for AI infrastructure continues to drive growth, despite the pricing pressure on components.
In contrast, competitors Advanced Micro Devices, Inc. (AMD) and Intel Corporation (INTC) also see revenue growth amid the AI chip demand, with AMD achieving a 50% revenue increase year over year in Q2 2026, and Intel’s revenue rising 25%. However, their gross margins remain below NVIDIA’s, highlighting NVIDIA’s higher capacity to absorb rising costs.
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