European Investor
27 Aug 2026, 09:52
NVIDIA Jumps 7.5% Premarket as AI Demand Drives Revenue Above $96 Billion
NVIDIA (NASDAQ: NVDA) shares are up about 7.5% in premarket trading after the chipmaker reported another exceptionally strong quarter, with accelerating AI infrastructure demand and a bullish outlook reinforcing confidence in its growth trajectory.
For the second quarter of fiscal 2027, NVIDIA reported revenue of $96.2 billion, up 18% sequentially and 106% year over year. Data Center remained the dominant growth engine, with revenue reaching $89.0 billion, up 117% from a year earlier.
Non-GAAP diluted EPS rose 120% year over year to $2.22, while non-GAAP operating income surged 124% to $64.0 billion. Gross margin remained exceptionally strong at 75.0%.
The outlook appears to be a major reason for the positive market reaction. NVIDIA expects third-quarter revenue of approximately $108 billion, plus or minus 2%, implying another roughly 12% sequential increase at the midpoint. Notably, that forecast assumes no Data Center compute revenue from China, highlighting the strength of demand elsewhere.
CEO Jensen Huang said AI infrastructure deployment is now “at full steam,” with multiple frontier AI labs, startups, sovereign AI projects and physical AI applications expanding simultaneously. NVIDIA's next-generation Vera Rubin platform is already ramping into full production.
The company is also benefiting from an increasingly broad AI ecosystem. During the quarter, NVIDIA announced infrastructure and technology initiatives involving major cloud providers, sovereign AI projects and a planned financing ecosystem aimed at mobilizing more than $500 billion of third-party capital for AI infrastructure.
The 7.5% premarket gain suggests investors are focusing on three key factors: another doubling of annual revenue, 117% Data Center growth, and guidance showing that NVIDIA's extraordinary expansion is continuing even from an increasingly large revenue base.
For investors, the next major question is whether the Vera Rubin ramp and continued hyperscaler and AI-lab spending can sustain this growth while keeping gross margins near the mid-70% range.
NVIDIA (NASDAQ: NVDA) shares are up about 7.5% in premarket trading after the chipmaker reported another exceptionally strong quarter, with accelerating AI infrastructure demand and a bullish outlook reinforcing confidence in its growth trajectory.
For the second quarter of fiscal 2027, NVIDIA reported revenue of $96.2 billion, up 18% sequentially and 106% year over year. Data Center remained the dominant growth engine, with revenue reaching $89.0 billion, up 117% from a year earlier.
Non-GAAP diluted EPS rose 120% year over year to $2.22, while non-GAAP operating income surged 124% to $64.0 billion. Gross margin remained exceptionally strong at 75.0%.
The outlook appears to be a major reason for the positive market reaction. NVIDIA expects third-quarter revenue of approximately $108 billion, plus or minus 2%, implying another roughly 12% sequential increase at the midpoint. Notably, that forecast assumes no Data Center compute revenue from China, highlighting the strength of demand elsewhere.
CEO Jensen Huang said AI infrastructure deployment is now “at full steam,” with multiple frontier AI labs, startups, sovereign AI projects and physical AI applications expanding simultaneously. NVIDIA's next-generation Vera Rubin platform is already ramping into full production.
The company is also benefiting from an increasingly broad AI ecosystem. During the quarter, NVIDIA announced infrastructure and technology initiatives involving major cloud providers, sovereign AI projects and a planned financing ecosystem aimed at mobilizing more than $500 billion of third-party capital for AI infrastructure.
The 7.5% premarket gain suggests investors are focusing on three key factors: another doubling of annual revenue, 117% Data Center growth, and guidance showing that NVIDIA's extraordinary expansion is continuing even from an increasingly large revenue base.
For investors, the next major question is whether the Vera Rubin ramp and continued hyperscaler and AI-lab spending can sustain this growth while keeping gross margins near the mid-70% range.
