Nvidia Reports Strong Q2 Results and Bullish Guidance for Fiscal 2028
After reporting second-quarter fiscal 2027 results that far exceeded expectations, Nvidia's stock surged nearly 9% on Aug. 27, 2026. The company generated $96.2 billion in revenue during the quarter — a 106% increase year-over-year — with its data center segment contributing $89 billion and growing at an even faster rate of 117%. Nvidia also announced strong forward guidance for fiscal 2028, forecasting at least 70% revenue growth. The company's new Vera Rubin systems are expected to significantly improve performance per watt while reducing inference token costs by up to 97%, potentially boosting AI adoption and profitability. However, concerns have emerged around Nvidia’s financing arrangements with smaller AI labs, where the firm is funding a portion of GPU purchases — creating what some call “circular” deals. Nvidia's adjusted earnings rose 120% year-over-year to $2.22 per share in Q2, and its current P/E ratio stands at 34.9 compared to a historical average of 61.5, suggesting it may be undervalued.
Tickers: $NVDA
Topics: AI data centers revenue growth semiconductors