NVIDIA Corp. (NVDA) reported a 106% year-over-year revenue increase for the second quarter of fiscal 2027, largely driven by its Data Center segment, which saw a 117% increase. Adjusted earnings per share surged 120%. For the upcoming third quarter, NVIDIA projects revenues of $108 billion, excluding China sales.
The demand surge from AI infrastructures, particularly from hyperscalers and enterprises, is benefiting memory and storage companies including Micron Technology Inc. (MU), Sandisk Corp. (SNDK), Seagate Technology Holdings plc (STX), and Western Digital Corp. (WDC). Micron’s gross margin rose to 84.9%, and it anticipates a revenue and earnings growth rate of over 91% for the next year.
Sandisk and Seagate are also poised for significant growth, with estimates surpassing 100% in the current year. Western Digital expects a revenue growth rate of 45.4% for the same period. The surge in AI demand has prompted all five major hyperscalers to report storage shortages and increasing prices for memory and storage chips.
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