NVIDIA Forecasts $108 Billion in Revenue for Next Quarter… China Revenue Excluded

The rise in searches for NVDA was driven by a combination of NVIDIA’s FY2027 second-quarter earnings release, its next-quarter revenue forecast, and expectations for AI data center demand. NVIDIA reported second-quarter revenue of $96.221 billion and data center revenue of $89 billion, and projected FY2027 third-quarter revenue of around $108 billion. However, the company said this forecast does not include revenue from data center compute in China.

Key Answer

The direct catalyst behind the attention on NVDA was NVIDIA’s FY2027 second-quarter earnings report, released on August 26, 2026. The company reported second-quarter revenue of $96.221 billion, an increase of 106% from the same period a year earlier.

The largest contributor was the data center business. FY2027 second-quarter data center revenue reached $89 billion, up 117% year over year. This once again confirmed that demand for AI infrastructure remains at the center of NVIDIA’s financial performance.

Why It Is Making Headlines Now

NVIDIA projected FY2027 third-quarter revenue of $108 billion, plus or minus 2%. The AP reported that this forecast was above the analyst estimate of $104.86 billion.

At the same time, there was an important caveat. NVIDIA said its FY2027 third-quarter outlook assumes no data center compute revenue from China. In other words, the forecast for revenue in the $100 billion range was issued on the condition that it does not include data center compute revenue from China.

Confirmed Financial Results

NVIDIA’s FY2027 second-quarter GAAP diluted EPS was $2.46, while non-GAAP diluted EPS was $2.22. The AP reported that the adjusted EPS of $2.22 exceeded the Wall Street consensus of $2.09, according to FactSet.

Net income was $59.688 billion, up 126% from the same period a year earlier. The company also disclosed its gross margin outlook. NVIDIA expects FY2027 third-quarter GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 basis points.

A Divided Market Reaction

Although the results were strong, the stock-market reaction was not straightforward. Investor’s Business Daily reported that NVIDIA shares initially declined because of concerns about the gross margin outlook, then rebounded following an announcement related to AWS.

Axios reported that CFO Colette Kress projected approximately 70% revenue growth for FY2028. It also reported that NVIDIA shares rose in after-hours trading following the outlook. The increase in NVDA searches can be interpreted as a market event combining the earnings release, the next-quarter revenue forecast in the $100 billion range, the AI data center demand outlook, and the FY2028 growth projection.

What to Keep in Mind

NVIDIA said that the Vera Rubin platform is ramping into volume production across partner environments including CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Nebius. This was presented as a factor supporting expectations for data center growth and AI infrastructure investment.

However, this is not investment advice or a recommendation to buy or sell. After-hours stock movements, analyst consensus estimates, and the conditions related to data center compute revenue from China may change after publication.