Nvidia Stock Soars After Making $96B in Just 3 Months: CFO Says It Could Have Made Twice as Much

Nvidia shares surged by nearly 7% during premarket hours on Thursday after the company doubled its fiscal Q2 revenue to $96.22 billion from $46.74 billion a year earlier. Adjusted earnings per share also surged by over 120% to $2.22 from $1.01 a year earlier.

For fiscal Q3, the company expects around $108 billion in revenue with gross margins of 74%. However, Nvidia chief financial officer Colette Kress said during the earnings call that the company remains 'supply constrained'; otherwise, it could double the revenue next year.

The massive sales boost in Q2 could be attributed to a 117% year-over-year growth in data centre revenue to $89 billion as the Vera Rubin platform ramps into full production with server racks already online at partner companies like Google Cloud, Microsoft Azure, CoreWeave, Oracle Cloud, and Nebius.

Kress particularly attributed the robust data center revenue uptrend to the Blackwell Ultra infrastructure expansion. Meanwhile, revenue from the AI cloud, industrials, and the enterprise segment also surged 138% amid rising end-demand from AI natives, enterprises, and sovereign clients. Interestingly, shipments of data centre Hopper products to China during the quarter accounted for less than 1% of data centre revenue.

Elsewhere, the edge computing segment witnessed a revenue growth to $7.2 billion on growing sales of Blackwell workstations, but was partly offset by a slump in consumer PC sales amid elevated memory prices.

'For enterprise technology buyers, the most important message is that AI infrastructure demand is still accelerating, but supply constraints, ecosystem lock-in, and ROI pressure are becoming the dominant strategic issues,' Forrester principal analyst Naveen Chhabra told IBTimes UK.

Strategic Commitments Double in a Single Quarter

Nvidia CFO highlighted that the company's commitments rose to $279 billion sequentially in Q2 from $119 billion, primarily due to the procurement of memory.

'Our upcoming data center leases have terms up to twenty years and are expected to commence between the third quarter of fiscal year 2027 and fiscal year 2033,' Kress stated. 'Our equity investments are focused on AI model makers, infrastructure financiers, and other private companies, subject to certain contingencies.'

However, the AI leader believes that securing land, power, and shell for data centres is the next important phase in the AI infrastructure build-out. Nvidia has entered into arrangements to help select customers secure the land, power, and data centre capacity needed to support their growth, as well as offer its AI infrastructure services.

'Under these agreements, we will earn revenue on the upfront sale of our infrastructure, and if certain criteria are met, we will participate in revenue share generated by the AI clouds from their third-party customers,' Kress added.

Nvidia likely has the supply to achieve its 70% revenue growth guidance for the next fiscal year, but demand levels continue to outpace supply.

Chhabra highlighted that large 'AI training clusters and high-end inference deployments may continue to face availability constraints. Multi-cloud and hybrid sourcing strategies have become increasingly important to avoid dependence on a single provider.'

Overall, the analyst believes Nvidia's competitive position remains strong, but warned that alternatives are emerging as buyers are likely to operate in a heterogeneous environment with Nvidia, hyperscaler chips, and specialised accelerators.

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