Nvidia Reports Record Revenue and Unprecedented Guidance
Nvidia recently announced $96.2 billion in revenue for the second quarter, marking a 106% increase from the same period last year. Notably, they also introduced an unprecedented full-year guidance.
Key Highlights:
- Data Center Revenue: Nvidia's data center revenue reached $89.0 billion, up 117% YoY, accounting for over 92% of total sales.
- Edge Computing: Edge computing contributed $7.2 billion to the overall revenue.
- Vera Rubin Production: Vera Rubin is now in full production.
- Annual Growth Forecast: For fiscal 2028, Nvidia forecasts roughly 70% growth, implying potential revenue of around $690 billion.
- Nearer-Term Guidance: They expect $108.0 billion plus or minus 2% for the current quarter, assuming no data center compute revenue from China.
Notable Guidance and Comments:
Jensen Huang, CEO of Nvidia, mentioned that they have never guided a full year ahead before. CFO Colette Kress highlighted their financing plan with six major finance giants, worth $500 billion, which includes $108.5 billion in maximum gross guarantee exposure.
Kress addressed criticism about circular financing, stating, "We see it differently... we’re not making loans". She emphasized that each deal is independently capital-underwritten.
The forecast is supported by Nvidia's significant investments in frontier AI labs totaling $50 billion and the substantial revenue per gigawatt of installed capacity projected for their products: $18 billion for Hopper, $25 billion for Blackwell, and $40 billion for Vera Rubin.
Nvidia also reported record shareholder returns, repurchasing $20 billion and paying $6 billion in dividends.