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Nvidia Reports Strong Fiscal Second-Quarter Results and Provides First-Ever Next-Year Revenue Guidance

Nvidia reported better-than-expected fiscal second-quarter results, with revenue reaching $96.2 billion, representing a 106% increase from the prior year. The company's data center revenue rose 117% to $89 billion, surpassing analyst estimates. Gross margins expanded to 75% from 72.4% in the year-ago period, and earnings per share climbed 120% year over year to $2.22. For the first time, Nvidia provided revenue guidance for the next fiscal year, projecting 70% revenue growth for fiscal year 2028. This guidance was a major factor in the stock's performance, as it broke a streak of four consecutive quarters where the stock declined the day after earnings. CFO Colette Kress noted that while the company is facing supply chain constraints and rising memory prices, it remains confident in its ability to support growth. The company also highlighted its expanding customer base beyond hyperscalers, including AI clouds, industrial, and enterprise customers. Nvidia currently holds the position of the world's most valuable company with a market capitalization of $5.12 trillion. Analysts generally maintain a "Strong Buy" rating on the stock, with a mean target price of $324.44.

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