Nvidia Reports Record Revenue Amid AI Boom; Gross Margin Pressure Signals Growth for Micron
Nvidia reported a record $96.2 billion in revenue during its fiscal second quarter, driven by strong demand from the data center segment which alone generated $89 billion. This represents more than double year-over-year growth and highlights Nvidia's central role in the AI infrastructure expansion as cloud providers rapidly scale capacity. Despite robust sales, Nvidia’s CFO Colette Kress noted a decline in gross margin expectations due to rising memory costs—specifically high bandwidth memory (HBM). The company anticipates GAAP and non-GAAP gross margins of 74% for Q3, down from the current quarter's 75%, with further declines expected before recovery begins. This shift is attributed primarily to increased procurement commitments related to HBM. The margin pressure signals a downstream benefit for memory suppliers like Micron Technology. As AI platforms require more advanced and stacked memory solutions, higher demand from Nvidia translates into stronger pricing power for companies such as Micron.
Topics: AI infrastructure data center sales hyperscale capex memory pricing