Nvidia posted better-than-expected results for the second quarter of fiscal 2027, but the most important part came from the conference call: the company confirmed that demand for AI infrastructure still outpaces supply and outlined very strong growth for fiscal 2028.
Revenue above expectations and record guidance
In the quarter ended in July, Nvidia reported revenue of $96.2 billion, up 106 percent year over year and above the roughly $92.3 billion expected by the market, a result about $4 billion above the consensus estimate. Adjusted earnings per share came in at $2.22, versus the $2.09 analysts had estimated. The Data Center segment, the heart of the company's business, generated $89 billion, up 117 percent from a year earlier and about 93 percent of total revenue. Edge and gaming brought in another $7.2 billion, above the $6.6 billion expected.
For the third quarter, Nvidia guided revenue between $105.8 billion and $110.1 billion, with guidance that for the first time exceeds the $100 billion mark in a single quarter. The average market estimate stood at around $105 billion.
Margins under pressure from memory costs
The only weak spot comes from margins. Nvidia guided a gross margin of around 74 percent for the current quarter, down from the 75 percent it just delivered, under pressure from rising high-bandwidth memory costs. The company expects the margin to bottom out in the fourth fiscal quarter, between 71 and 72 percent, then settle between 72 and 73 percent in fiscal 2028. These are signals worth monitoring, but they do not call demand into question.
The conference: AI demand above supply
During the conference call the message was clearly constructive. Chief Financial Officer Colette Kress said Nvidia expects to grow by about 70 percent in fiscal 2028, against the roughly 45 percent growth analysts had projected. She added that demand is still accelerating even at the company's scale, with customers' forecasts pointing to growth doubling next year. "Incredibly, we are seeing demand acceleration even at our scale," she said, echoing CEO Jensen Huang's comment: "AI has reached its inflection point. It's doing useful work. Now, compute is revenue."
The new Vera Rubin platform is now in full production, with racks running at AWS, Google Cloud, Microsoft Azure, Oracle Cloud and Nebius, and supply commitments have grown beyond $279 billion, largely tied to memory procurement for the platform itself. The third-quarter guidance, moreover, assumes no compute revenue from China.
The market reaction
The stock initially fell after the numbers were released, then fully reversed course during the conference call, rising about 5 percent in after-hours trading and lifting Nasdaq futures, which gained about 1 percent in Thursday's session. In premarket the shares rose as much as more than 6 percent. The read-through is clear: AI demand remains very strong and the outlook is highly constructive, a positive signal for the Nasdaq and for the overall semiconductor complex.
The indirect impact on Bitcoin
For Bitcoin the effect is indirect, but still positive. With a solid quarter and a strong outlook, one of the most feared risk-off triggers disappears: a weak Nvidia capable of fueling the "AI bubble" narrative. The removal of that market risk supports risk sentiment in favor of digital assets.
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