Nvidia Reports Record $96 Billion Quarter but Faces Supply Constraints
Nvidia reported record quarterly revenue of $96.2 billion for the fiscal second quarter, more than doubling from a year ago and driven largely by its Data Center division, which generated $89 billion in sales—accounting for nearly 93% of total revenue. The company forecasts continued strong growth with an expected third-quarter revenue of around $108 billion and anticipates annual revenue to grow about 70% through fiscal year 2028. Despite robust demand, Nvidia warned that supply constraints will remain a bottleneck at least until the end of fiscal 2028. This is notable because it suggests production capacity—not customer interest—is now limiting growth potential. The company’s GAAP operating income reached $63.7 billion and net income climbed to $59.7 billion, with gross margins maintained at 75%, highlighting its ability to convert demand into profit. Analysts are already speculating about the possibility of Nvidia reaching $1 trillion in annual revenue by fiscal 2029—far above current Wall Street estimates—but achieving such a target will depend heavily on resolving supply chain limitations.
Tickers: $NVDA
Topics: AI semiconductors supply chain constraints