Overview
- Nvidia posted record second-quarter results with $96.2 billion in revenue, about $89 billion from Data Center sales, and roughly $21.3 billion in free cash flow.
- Management guided for roughly 70% year‑over‑year revenue growth for fiscal 2028 and said supply capacity, not demand, is the main constraint on that outlook.
- Executives warned that surging memory prices for DRAM and high‑bandwidth memory plus advanced packaging and infrastructure costs could push gross margins down into the low‑to‑mid 70 percent range.
- The company excluded China data‑center compute revenue from its forward outlook and disclosed heavy balance‑sheet support for customers, including large equity investments, supply commitments, and funding for AI labs, which strengthens platform lock‑in but raises financing and exposure risks.
- Investors and analysts remain bullish on long‑term growth and platform durability even as the stock trades at a high market value, but they are watching memory costs, supply limits, China exposure, and the risk that hyperscalers build custom chips as key near‑term threats.