Nvidia Reports Doubled Revenue, Forecasts 70% Growth for Next Fiscal Year on AI Chip Demand
Nvidia's Q2 revenue surged over 100% to $96.2 billion, with a 70% FY28 sales forecast, signaling sustained, high demand for AI chips and infrastructure.
The story
Nvidia announced record-breaking second-quarter fiscal 2027 earnings on August 26, with revenue climbing 106% year-over-year to $96.2 billion, exceeding analyst expectations. The company's data center segment, fueled by insatiable demand for its AI GPUs, generated $89 billion in revenue.
CEO Jensen Huang stated that "AI has reached its inflection point," driving profitable compute. Looking ahead, Nvidia provided a rare forecast, projecting approximately 70% revenue growth for its fiscal year 2028, which ends in January 2028.
This outlook suggests that the AI infrastructure buildout is still accelerating, despite ongoing supply constraints for memory components. CFO Colette Kress noted that demand significantly outstrips current supply, implying even higher potential revenue if not for these bottlenecks. The company also expanded its partnership with Amazon Web Services, committing to deploy an additional 2 million Nvidia GPUs across AWS's global infrastructure in 2027 and 2028, reinforcing the continued investment by hyperscalers in AI capabilities.
Who moved
Nvidia
What Changed: Reported Q2 FY27 revenue of $96.2 billion, up 106% year-over-year, and forecast 70% revenue growth for fiscal year 2028.
Why It Matters: This demonstrates persistent, accelerating demand for AI chips, reassuring investors about the long-term AI spending cycle.
Apple
What Changed: Introduced new Mac mini and Mac Studio models, designed with more powerful processors and memory for local AI workloads.
Why It Matters: Signals Apple's focus on enabling AI processing directly on user devices, potentially shifting some AI workloads from the cloud.
What Changed: Launched Gemini Enterprise for Legal, a specialized AI platform tailored for law firms and legal departments.
Why It Matters: Indicates a move towards vertical-specific AI solutions, targeting regulated industries with specialized needs for data control and legal accuracy.
Meta
What Changed: Filed an appeal against the European Commission's interim measures decision regarding free access to WhatsApp for rival AI assistants.
Why It Matters: Challenges regulatory efforts to ensure open competition in the emerging market for AI assistants integrated with messaging platforms.
Products & launches
Mac mini and Mac Studio
Company: Apple
What: New versions launched with enhanced processors and memory, designed to support local AI model execution for developers and users.
Gemini Enterprise for Legal
Company: Google
What: A new AI platform offering specialized agents and capabilities for legal tasks like contract analysis and research, integrating with existing legal tech.
Azure Databricks Genie One and Genie Agents
Company: Microsoft
What: Free usage of these AI-powered tools for Azure Databricks has been extended through January 31, 2027.
Platforms & policy
European Commission (EU)
Development: Meta was found in preliminary breach of the Digital Services Act for failing to provide simple ways for users to complain or flag illegal content on Instagram and Facebook.
Meta / WhatsApp
Development: Meta appealed the European Commission's interim measures decision, which mandated free access for rival AI assistants to the WhatsApp Business API.
Google Ads
Development: Google is beta testing a new AI-created Product title report and a "Channels" slider for prioritizing conversions within Google Ads.
Money & markets
Nvidia. Reported Q2 FY27 revenue of $96.2 billion, a 106% year-over-year increase, driven by data center AI chip sales.
Nvidia. Forecasts a 70% revenue increase for its fiscal year 2028, indicating strong, sustained demand for its AI computing products.
Big Tech (Microsoft, Meta, Amazon, Alphabet). Collectively expect to spend roughly $800 billion on data centers and AI infrastructure in 2026, nearly double last year's total.
What we'll be watching
- Continued monitoring of Nvidia's supply chain to meet its projected 70% revenue growth for fiscal year 2028.
- Developments in Meta's appeal against the EU's WhatsApp Business API interim measures.
- Further regulatory actions by the European Commission under the Digital Services Act regarding content moderation on Meta's platforms.
Reporting + analyst voices: grounded via Google Search at publish time.