What happened
Nvidia reported Q2 revenue of $96.22 billion, up 106% year over year, and gave a Q3 forecast of $108 billion, above expectations. The stock rose more than 7% on Thursday. Data Center sales jumped 117% to a record $89 billion.
Why it matters
The strong results and outlook eased Wall Street's concerns about a growth slowdown. Nvidia also said it expects roughly 70% revenue growth in fiscal 2028, which is well ahead of current projections. Production of its Vera Rubin platform has started, with orders from all major hyperscalers and AI cloud providers.
What to watch
Nvidia expects Vera Rubin to account for about 20% of Data Center revenue in Q3 and says it could become the fastest product ramp in its history. The company also noted that supply will remain constrained through the end of fiscal 2028.
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Nvidia's latest results mark another beat-and-raise quarter, with revenue and earnings far exceeding estimates. The company's Q3 forecast of $108 billion is above the $102 billion analysts expected, and its preliminary fiscal 2028 outlook of about 70% growth is well ahead of projections of $553.24 billion (42% growth). This shows that demand for AI chips remains robust, even as the company itself acknowledges supply constraints that will persist through fiscal 2028.
The Vera Rubin platform is a key driver of this momentum. Production shipments started earlier this month, and orders from major hyperscalers and AI cloud providers indicate strong adoption. Management expects Vera Rubin to contribute roughly 20% of Data Center revenue in Q3 and could become the fastest product ramp in the company's history. This ramp-up, combined with the strong overall demand, supported the stock's rise, but investors should still watch gross margins and how much of the AI infrastructure buildout Nvidia will need to finance itself, as these were among the key questions ahead of the report.
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