Nvidia posts record $96.2B quarter, forecasts 70% growth

Nvidia reported record revenue of $96.2 billion for its fiscal second quarter, up 106% year-over-year, and forecast 70% growth for fiscal 2028, its first-ever year-ahead guidance. CEO Jensen Huang declared that "AI has reached its inflection point," citing productive and profitable AI tokens and accelerating demand Source: Tom's Hardware, AP News. The results beat Wall Street expectations, with shares rising about 6% in premarket trading Source: CNBC.

Record results and outlook

• Revenue: $96.2B, up 106% YoY; net income $59.7B, up 126% Source: Tom's Hardware.
• Data center revenue: $89B, up 117% YoY Source: BBC.
• Current-quarter guidance: $108B, above consensus of ~$104B Source: AP News.
• Fiscal 2028 growth: ~70%, with supply constraints limiting even higher demand Source: CNBC.

Financing and circularity concerns

Nvidia has become a major financier of its own customers, arranging a $500B AI infrastructure package and guaranteeing up to $105B for OpenAI's Ohio data center. CFO Colette Kress defended these deals: "We recognize the scale of this support, and we know some will call this circular financing. We see it differently" Source: Gizmodo. Critics warn of concentrated risk and a potential bubble, while Nvidia argues its compute platform is fungible and redeployable Source: Gizmodo, The Next Web.

Hugging Face acquisition

Reports indicate Nvidia has agreed to acquire Hugging Face for $12.9 billion, a move that would strengthen its open-model strategy and expand its software ecosystem Source: Tom's Hardware, CNBC. The deal, first reported by The Information, is not yet confirmed by either company Source: CNA.

Margins and supply

Nvidia's gross margin is expected to decline from 75% to 72-73% next year due to rising memory costs. Huang said the company "ripped the Band-Aid off" to reset expectations Source: Fox Business. Supply constraints, particularly for memory, limit growth to about 70% despite demand exceeding that Source: AP News.