Datacenter Exceeds Expectations, Rubin Begins to Take Over from Blackwell
NVIDIA's Datacenter revenue for the second quarter of fiscal 2027 reached $89.0 billion, an increase of $13.8 billion sequentially, exceeding market expectations of $86.0 billion. The growth was primarily driven by shipments of the Blackwell series. The Rubin series will begin shipments in the third quarter, gradually succeeding Blackwell to complete the product upgrade.
Under the new reporting format, revenue from hyperscale customers was $48.7 billion, an increase of $5.7 billion sequentially; revenue from AI cloud, industrial, enterprise, and sovereign customers was $40.3 billion, an increase of $8.1 billion sequentially. The faster growth in the latter indicates that the demand for computing power is expanding from a few cloud giants to a broader range of customers.
The company's overall revenue was $96.2 billion, a year-over-year increase of 106%; Datacenter revenue grew 117% year-over-year. The revenue guidance for the third quarter reached $108.0 billion, continuing to exceed market expectations, and does not include revenue from datacenter computing in China.
Why the 70% Growth Guidance Caused a Post-Market Reversal in the Stock Price
Following the earnings release, the market initially expressed concerns about the sustainability of growth rates and capital expenditures, causing the stock price to weaken temporarily. However, management projected revenue growth of approximately 70% for the next fiscal year and emphasized that real demand exceeds current supply capabilities. Subsequently, the stock price turned upward in after-hours trading.
NVIDIA is converting strong demand into orders by securing capacity in advance, participating in customer financing, and providing infrastructure support. This model strengthens revenue visibility but also embeds the company deeper into the capital cycle of AI datacenters. If customers fail to achieve sufficient returns in the future, the market may re-evaluate the associated financing and guarantee risks.
High Growth Coexists with Overheating Risks
The gross margin for the second quarter was 75%, with guidance for the third quarter at approximately 74%. The volume production of new platforms, memory costs, and supply chain constraints may all put pressure on gross margins. On the other hand, the rapid scaling of AI infrastructure investment, customer concentration, and returns on capital expenditures have become important variables for valuation.
In the short term, the $108.0 billion guidance, the shipment of Rubin, and the 70% growth expectation for the next fiscal year continue to support NVDA. In the medium term, it will be necessary to observe whether Rubin deliveries proceed smoothly, whether supply can expand, and whether customers can generate sufficient revenue from AI applications. The computing power 'money printer' is still operating at high speed, but when the market is already pricing in extremely high growth, any deviation in delivery or profitability could amplify stock price volatility.
