NVIDIA delivered another blockbuster quarter, with revenue up 106% and Data Centre sales up 117%.
AI demand remains exceptionally strong, with Q3 revenue guided to $108 billion.
Credit exposure is emerging as a new risk as NVIDIA helps finance AI infrastructure.

NVIDIA Q2 Earnings: The AI Boom Is Still Accelerating

NVIDIA has put one of the larger worries of the market to rest for now, with another revenue beat, stronger Q3 guidance and, more importantly, a forecast for roughly 70% revenue growth in FY2028 against expectations closer to 45%.

NVIDIA has delivered very strong quarterly results that would keep the AI bull market alive. NVIDIA reported fiscal Q2 2027 revenue of $96.2 billion, up 106% year over year, while Data Center revenue jumped 117% to $89 billion.¹

But the bigger highlight was the outlook. NVIDIA guided for around $108 billion in Q3 revenue, well above the $91 billion target it set three months earlier. The forecast also assumes no Data Center compute revenue from China, making the underlying demand picture even more striking.¹

At this point, beating expectations has almost become the baseline for NVIDIA. Investors want more than a strong quarter. They want evidence that extraordinary growth can continue. NVIDIA delivered that too.

Management expects revenue to grow by approximately 70% in fiscal 2028, while saying demand is running ahead of the ability of the company to supply the market.¹The constraint is now how quickly NVIDIA, and its suppliers can produce enough computing capacity.

NVIDIA Vera Rubin: The Next Driver of AI Growth

The transition from Blackwell to Vera Rubin provides another potential growth driver. NVIDIA said Vera Rubin is moving into full production, with systems already running at several major cloud providers. The company also estimates that the revenue opportunity per gigawatt of AI data center capacity rises from around $18 billion with Hopper to $25 billion with Blackwell and $40 billion with Vera Rubin.¹

That suggests NVIDIA is capturing a larger share of the AI infrastructure stack, including networking, systems, CPUs and software. For NVIDIA shares, this is an important positive because it gives investors another product cycle to support growth rather than relying indefinitely on Blackwell.

NVIDIA Q2 Earnings Keeps the Broader Tech Rally Alive

The results are also positive for the wider AI trade. NVIDIA said hyperscale revenue reached $49 billion, while its Accelerated Computing and Networking business reached around $40 billion, up 138% year over year.² That provides fresh evidence that major technology companies are still willing to spend heavily on AI infrastructure.

The impact should extend beyond NVIDIA to semiconductor, networking, memory, data centre and power infrastructure stocks. The market had been concerned that AI capital spending could eventually peak. NVIDIA has pushed that concern further into the future. But it has not eliminated it.

The emerging concern is if the enormous investment in AI infrastructure will generate sufficient returns for customers to keep spending at this pace.

NVIDIA AI Financing Raises Credit Risk Concerns

NVIDIA is helping AI companies access financing to build the infrastructure needed to deploy its chips. The company has partnered with major financial institutions on platforms designed to mobilise more than $500 billion of third party capital for AI infrastructure.³ The strategy can accelerate the AI buildout, but it also introduces a new financial risk.

NVIDIA does not appear to have a traditional liquidity problem. The company generates enormous amounts of cash and operates with exceptionally high margins. The concern is if some of the financial risk of funding AI infrastructure could gradually move from customers toward NVIDIA and its financial partners.

NVIDIA has disclosed maximum gross exposure of $108.5 billion from guarantees linked to AI infrastructure, including a potential $105 billion commitment related to SB Energy’s Portsmouth project in Ohio.⁴

The guarantees are subject to conditions, and OpenAI has agreed to reimburse and indemnify NVIDIA for amounts actually paid under the agreements.⁴ Still, investors will need to watch NVIDIA’s guarantees, receivables and financing commitments alongside its traditional financial results.

NVIDIA AI Growth Remains Strong, But Margins Face Pressure

The Q2 results make one thing clear: AI demand remains strong. The harder question is how long NVIDIA can maintain extraordinary growth at its current scale.

A company generating nearly $100 billion in quarterly revenue while growing more than 100% inevitably faces tougher comparisons. Investors will look beyond the next quarter and ask whether 70% growth in fiscal 2028 is sustainable, whether margins can remain strong and whether customers are earning enough from their AI investments to keep spending.

There are already some pressure points. NVIDIA expects gross margin to fall from 75% in Q2 to around 74% in Q3, with higher memory and component costs creating pressure. Management expects margins could fall further before stabilising.¹

A 74% gross margin is still exceptional, but the direction is important when expectations are this high.

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Source: TradingView, NVIDIA daily price chart, as of August 26, 2026.

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NVIDIA Stock Outlook: AI Boom Rolls On, But Valuation Is Key

For NVIDIA shares, the outlook remains fundamentally bullish but valuation sensitive. The earnings and guidance have strengthened the growth story, but the key question is how much of that strength is already reflected in the stock price.

For the broader market, NVIDIA results are a green light for the AI trade, but not a blank cheque. The company has shown that AI infrastructure spending is still accelerating, which should support the Nasdaq and the wider semiconductor sector.

However, the next leg of the rally will require more than strong GPU demand. Investors will want to see AI spending translate into real revenue growth, higher productivity and stronger cash flows across the technology sector.

The market is asking how profitable the AI boom will be and how much capital it will take to sustain it. NVIDIA has strengthened the bull case, but it has not answered that question yet.

Professional investors looking for magnified exposure to NVIDIA may consider Leverage Shares +3x Long NVIDIA or -3x Short NVIDIA ETP.

Footnotes:

NVIDIA Newsroom, NVIDIA Announces Financial Results for Second Quarter Fiscal 2027, as of August 26, 2026.
Investing.com, A Earnings call transcript: NVIDIA beats Q2 2026 estimates as AI demand stays hot, as of August 26, 2026.
NVIDIA Newsroom, NVIDIA Partners With Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to Establish AI Compute Infrastructure Financing Platforms to Mobilize Over $500 Billion of Third-Party Capital, as of August 10, 2026.
NVIDIA, NVIDIA, SEC filing, as of August 17, 2026.