According to latest market data, Nvidia shares surged 8% overnight following the company's strong quarterly results and optimistic 2027 outlook. The stock had initially dipped on the news before recovering strongly. The rally was accompanied by broader technology gains, with Bitcoin rising 2.4% to trade near $80,400 as technology futures advanced. As reported by crypto.news, the cryptocurrency's move coincided with stronger U.S. technology futures and gains across global semiconductor stocks, with Nasdaq 100 futures advancing about 1.1%. Companies connecting Bitcoin mining infrastructure with AI computing also advanced, with IREN gaining about 5%, while TeraWulf and Cipher Mining each added approximately 3% before Thursday's opening. The before-hours trading volumes surged to more than 7.1 million during the pre-market session.
As reported by Investing.com India, Nvidia generated more revenue in a single quarter than the company that manufactures its chips generated in the whole of last year. Taiwan Semiconductor Manufacturing Company (TSMC), which physically produces Nvidia's chips, generated $88.268 billion across the whole of 2024. Nvidia matched that in three months alone. The Data Center division on its own now brings in more in three months than most global corporations manage in an entire year, and it grew even faster than the group as a whole. A growth rate of 106% at this scale doesn't happen by accident, and it rarely happens at all. Companies typically grow fast or grow big, but doing both at once at this pace and at this scale is exceptionally rare.
According to The Economic Times, Nvidia's second-quarter results demonstrated robust performance across key metrics. Data Center sales more than doubled to $89 billion, beating estimates of $85.08 billion, with gross margin of 75%, in line with guidance and expectations. The company reported adjusted profit of $2.22 per share, compared with estimates of $2.10, and guided for revenue of $108 billion for the third quarter, plus or minus 2%, compared with analysts' average estimate of $104.19 billion. Nvidia guided for revenue of $396 billion for fiscal 2027, which ends in January, with the company expecting gross margin to contract 100 basis points quarter-on-quarter to 74%, 80 basis points below consensus, due to higher component prices. The company expects gross margin to bottom in the fourth quarter at 71-72% before returning to 72-73% in FY28, supported by price increases.
According to Business Standard, Nvidia forecasted 70% revenue growth in fiscal 2027, a rare disclosure for the chip company that typically doesn't issue such projections. CEO Jensen Huang noted that "AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue." The outlook is likely to reassure investors who have questioned how long the AI spending surge can last after years of explosive growth. Nvidia expects demand from AI labs to contribute roughly a quarter of its overall business next year, indicating a diversified customer base beyond traditional hyperscalers. The company's Vera Rubin platform, which has now started shipping to customers, will account for about a fifth of its overall data center revenue in the current quarter ending in October. The company also announced an expansion of its partnership with Amazon Web Services, with the pair deploying an additional 2 million Nvidia graphics processors across Amazon's global infrastructure in 2027 and 2028.
According to Business Standard, Nvidia faces continued supply constraints that limit its growth potential despite strong demand. Finance chief Colette Kress told analysts that "We are seeing demand acceleration even at our scale. Customers' forecasts point to our growth doubling next year. However ... we are supply-constrained." The company expects soaring memory prices and higher component costs to continue pressuring margins, with margins expected to bottom in the fourth quarter at 71-72%. Nvidia increased its supply commitments by $160 billion to $279 billion in the second quarter, most of which is for HBM supply, underscoring confidence in a $2 trillion cloud industry demand funnel. The company also announced that the neo-clouds, which include companies like Nebius and CoreWeave, are set to exit this year with more than eight gigawatts in Nvidia GPU capacity, a surge from the three gigawatts at the end of last year. Based on the consensus projection of $396 billion in revenue for fiscal 2027, Nvidia's sales next year would reach $673 billion, putting the chipmaker ahead of Apple and Alphabet, according to Wall Street projections.
