Nvidia Beats Expectations On All Q2 Metrics And Estimates 70% Jump In FY28 Revenue — NVDA Stock Gains 5% After-Hours

• Nvidia reported Q2 revenue of $96.2 billion, up 106% from a year ago, surpassing expectations of $92.1 billion. 
• The chipmaker expects Q3 revenue of $108 billion, surpassing the $103.9 billion consensus. 
• Nvidia did not assume any Data Center compute revenue from China in its Q3 outlook. 

Nvidia (NVDA) share price jumped about 5% after hours on Wednesday after the company forecast 70% revenue growth for FY28, clearing the litmus test for investors worried that soaring AI buildout costs might not translate into tangible revenue. 

“The surge in AI demand is driving a global infrastructure buildout, supported by an expanding and diverse set of growth opportunities spanning hyperscalers, AI labs, AI-native enterprises, and sovereign customers…we expect to grow revenue by approximately 70% in fiscal 2028,” Colette Kress, Executive Vice President and Chief Financial Officer, said during the earnings call. 

Meanwhile, Nvidia and Amazon Web Services announced a major extension of their strategic partnership, committing to deploy two million additional next-generation GPUs across AWS's global infrastructure between 2027 and 2028. 

The deal is designed to address exploding enterprise demand for reasoning-capable agentic systems, scientific research, and physical AI robotics. 

The deal announcement with AWS, along with the 70% revenue growth forecast, catapulted NVDA stock into positive territory after it initially dropped about 1.2% after hours. 

Strong Quarterly Performance Tops Projections

For the second quarter ended July 26, Nvidia reported revenue of $96.2 billion, more than double the prior-year period. Adjusted net income reached $2.22 per share.

Both metrics topped Wall Street expectations, which had projected $92.1 billion in revenue and $2.09 per share in adjusted earnings.

Nvidia’s flagship data center division drove most of the growth, contributing $89 billion versus average estimates of $85.8 billion. Hyperscale cloud infrastructure providers, notably Alphabet Inc.’s Google (GOOG, GOOGL) and Amazon.com Inc. (AMZN), remained the primary drivers of hardware adoption.

For the current quarter (Q3), Nvidia expects revenue of $108 billion, plus or minus 2%, ahead of the average analyst projection of $103.9 billion. Adjusted gross margins are forecasted to hold near 74%.

AWS Infrastructure Expansion

On Wednesday, Amazon Web Services committed to deploying two million additional Nvidia GPUs, leveraging the next-generation Blackwell Ultra, Rubin, and Rubin Ultra architectures across its global fleet from 2027 to 2028.

Nvidia Chief Executive Officer Jensen Huang highlighted the rollout of the company's newest hardware lineup during the earnings presentation.

"The AI infrastructure build-out is at full steam," Huang said. "Vera Rubin, now in full production, was built to power exactly this moment."

Under the expanded alliance, AWS will become the first major cloud provider to offer instances utilizing Nvidia RTX PRO 4500 Blackwell Server Edition processors. The joint venture also includes dedicated, high-security AI factories containing 100,000 GPUs tailored for government workloads, integration of Nvidia Vera CPUs, and deepened collaboration with Amazon Robotics via the Nvidia Isaac software framework.

Nvidia Supply Bottlenecks and Competitive Pressures

Despite surging demand, Nvidia continues to contend with severe supply chain constraints within the memory semiconductor sector. Key suppliers, including Samsung Electronics Co., SK Hynix Inc. (SKHY), and Micron Technology Inc. (MU), are operating at maximum capacity, yet industry estimates suggest memory availability will lag market needs for years, according to Bloomberg.

Because high-bandwidth memory chips are packaged directly alongside Nvidia's processors, rising component costs have forced Nvidia to inform clients of product price hikes exceeding 15%.

Nvidia is also facing increased competition from major technology clients and emerging market entrants pursuing proprietary silicon initiatives. OpenAI disclosed this week that its newly developed internal processor, code-named Jalapeno, performed better than Nvidia’s current chip offerings during testing.

NVDA Stock: Retail View 

Retail sentiment on Stocktwits shifted to ‘extremely bullish’ from ‘bullish’ with ‘extremely high’ message volumes, with most retail investors anticipating steady stock gains at Thursday’s open. 

NVDA stock has gained about 12% year-to-date. 

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