- Nvidia reported Q2 FY27 revenue of $96.2B, up 106% year-over-year and $5.2B above its forecast, driven by $89.0B in data center revenue.
- Vera Rubin began production shipments in August and is ramping into full production with major partners, expected to contribute about 20% of data center revenue in the current quarter.
- Nvidia's forecast excludes China data center compute revenue, and gross margins are guided to 71-72% in Q4 due to extreme memory pricing before recovering in FY28.
- FY28 revenue growth is projected at about 70%, which Nvidia calls a supply-constrained outlook despite demand being much greater.
- BNP Paribas raised its Nvidia price target to $345 from $285, keeping the chipmaker its preferred semiconductor stock on AI computing leadership.
Quotes
“Nvidia (NVDA) remains BNP Paribas' preferred semiconductor stock as the brokerage expects the chipmaker to retain a leading position in AI computing.”
“extreme pricing conditions in memory”
“supply-constrained outlook”
“much greater”