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Nvidia Posts $96.2 Billion Quarter, Keeps Dividend at $0.25

The payout decision raises questions about margin pressure from rising memory costs, large customer financing commitments, investor unease over AI spending, and Nvidia's market decoupling.

Overview

  • Nvidia reported second-quarter fiscal 2027 revenue of $96.2 billion after Wednesday's earnings, driven by $89 billion in data-center sales that amounted to about 92% of the quarter's revenue.
  • Management guided roughly $108 billion for the current quarter and projected about 70% revenue growth for fiscal 2028, signaling continued strong demand for AI compute.
  • The board left the quarterly dividend unchanged at $0.25 following a May increase from $0.01, a move that has raised investor questions about the company's capital-allocation plans despite massive cash generation.
  • Shares swung sharply after the report and are trading with unusually low three-month correlation to the PHLX Semiconductor Index, a pattern that reflects company-specific drivers and higher investor scrutiny.
  • Analysts and investors warn of concrete risks to sustainment: rising high-bandwidth memory and advanced-packaging costs that can press gross margins, export-control and supply limits that cap near-term capacity, and large ecosystem financing commitments that expose Nvidia's balance sheet.