Dive Brief:
- Nvidia revenue reached $96.2 billion during the second quarter of its 2027 fiscal year, more than doubling year over year as AI infrastructure efforts continue, executives said during an earnings call Wednesday.
- The tech giant’s data center revenue slice hit $89 billion, up 117% year over year. Of the provider’s data center revenue, $49 billion came from the hyperscaler subsegment and $40 billion from its enterprise, AI cloud and industrial customers.
- Hyperscalers remain a major growth driver for Nvidia, CFO Colette Kress said during the earnings call. Nvidia on Thursday announced an expansion of its collaboration with AWS to deploy 2 million additional Nvidia GPUs across AWS infrastructure to meet surging demand.
Dive Insight:
Nvidia’s relentless growth streak comes despite memory supply constraints driven by the AI buildout — a bottleneck the company expects to remain through the end of fiscal year 2028.
“Tighter memory supply is a symptom of the same demand surge that’s driving our growth,” Kress told investors. “We have longstanding deep relationships with all three major memory suppliers and we’re working closely with them to further increase the capacity our roadmap requires.”
Nvidia acknowledges supply constraints will play a role in its 2028 revenue projections, which are expected to grow 70% year over year, Nvidia President and CEO Jensen Huang told investors during the earnings call. The vendor is working to secure infrastructure both upstream and downstream within the supply chain to support heightened demand.
As hyperscalers snap up available resources to support AI workloads, global semiconductor revenue will exceed $1.3 trillion in 2026, with prices for dynamic random-access memory and NAND flash chips to increase by 125% and 243% respectively, according to a Gartner report.
Enterprises should anticipate that AI compute demand and AI pricing pressure will stay elevated and should not expect significant GPU price drops within the next year to two years, Naveen Chhabra, principal analyst at Forrester, said in an emailed statement.
Nvidia’s earnings results highlight the need for CIOs to extract measurable business value from AI over acquiring more GPUs, Chhabra said.
“For enterprise technology buyers, the most important message is that AI infrastructure demand is still accelerating, but supply constraints, ecosystem lock-in, and ROI pressure are becoming the dominant strategic issues,” Chhabra said.
