Nvidia Reports Stellar Q2 Earnings
Nvidia (NASDAQ: NVDA) announced impressive fiscal 2027 second-quarter earnings on [insert date], reporting total revenue of $96.2 billion, more than double the $46.7 billion from the same quarter last year. Data center sales soared by 117% year-over-year, generating $89 billion—more revenue than the entire company had one year prior. This growth reflects significant capital expenditure from hyperscale cloud providers, contributing $48.7 billion, a 102% increase from the previous year.
Despite strong sales, rising prices for high-bandwidth memory (HBM) are squeezing Nvidia’s gross margins, which were reported at 75%. The company anticipates a decline in gross margins to between 71% and 72% by the fourth quarter, attributed to increased commitments for memory components that surged from $119 billion to $279 billion. This trend could benefit Micron Technology (NASDAQ: MU), as Nvidia’s lower gross margin outlook suggests heightened pricing power for memory suppliers amidst AI infrastructure demands.
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