Why NVIDIA’s Earnings Drew Attention: $108 Billion Outlook Excludes China Revenue

NVIDIA reported $96.221 billion in fiscal 2027 second-quarter revenue, including $89 billion from data centers. Results beat market expectations, and the company forecast $108 billion in revenue for the following quarter. However, the outlook excluded China data-center compute revenue, while rising memory costs and supply constraints were also highlighted.

NVIDIA’s fiscal 2027 second-quarter results, announced on August 26, 2026, drew attention from readers seeking to assess whether demand for AI semiconductors remains strong. Revenue and data-center sales more than doubled from the previous year, and the company issued a high revenue outlook for the following quarter. However, NVIDIA excluded China data-center compute revenue from its outlook and mentioned rising memory costs and supply constraints, making it important to consider both the scale of growth and the conditions required to sustain it.

Key Changes

NVIDIA’s fiscal 2027 second-quarter revenue was $96.221 billion, up 106% year over year and 18% from the previous quarter. Data-center revenue was $89 billion, increasing 117% year over year and 18% quarter over quarter. The company reported GAAP diluted earnings per share of $2.46 and non-GAAP diluted earnings per share of $2.22.

According to an AP report, adjusted earnings per share of $2.22 exceeded the Wall Street estimate of $2.09, based on FactSet data. Revenue of $96.22 billion also surpassed the average analyst estimate of $92.27 billion. As a result, the announcement drew attention not simply because revenue increased, but because the actual quarterly results came in above the market’s average expectations at the time.

The key figures are $96.2 billion in revenue, $89 billion in data-center revenue, and $2.22 in non-GAAP EPS.

Current Status

NVIDIA forecast fiscal 2027 third-quarter revenue of $108 billion, plus or minus 2%. However, the company said this outlook did not assume any data-center compute revenue from China. This should be understood as meaning that China data-center compute revenue was not included when calculating the outlook, not as official confirmation that NVIDIA is withdrawing from all business in China.

Business Insider reported that CFO Colette Kress explained that China revenue was not included in the next-quarter outlook because of geopolitical uncertainty. The same report said she also indicated that memory prices had risen more than previously expected and were continuing to move higher into the following year. The company expected gross margin of approximately 74% in the current quarter and said it could reach a low of 71% to 72% in the fourth quarter of fiscal 2027.

These figures show why the condition of the business cannot be judged by revenue growth alone. The revenue outlook is high, but assumptions about China-related revenue and memory costs could affect future profitability and how the outlook is interpreted.

Impact

Alongside its earnings announcement, NVIDIA disclosed several plans supporting demand for AI infrastructure. The company said its Vera Rubin platform had entered full-scale production and was operating in partner racks at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Nebius.

The AP reported that NVIDIA and Amazon Web Services announced plans to deploy an additional 2 million NVIDIA GPUs and apply NVIDIA chips to robots in Amazon warehouses. NVIDIA also said it was pursuing a platform to mobilize more than $500 billion in third-party capital for AI infrastructure construction with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR.

NVIDIA expects its revenue growth rate in fiscal 2028 to be approximately 70%. Citing the CFO, the AP reported that growth could have been higher based on customer outlooks if there had been no supply shortages. This signals strong demand for AI infrastructure while also indicating that supply could limit the pace of growth.

The immediate trigger for rising search volume on Google Trends in South Korea appears to have been the spread of earnings-related English keywords such as “Q2 results,” “memory prices,” and “AI outlook” immediately after the official earnings release. This helps explain why market attention expanded beyond a single earnings figure to memory prices, China revenue, and the AI outlook.

Next Checkpoints

The next points to monitor are NVIDIA’s fiscal 2027 third-quarter results and updates to its outlook. Key questions include how actual revenue compares with the roughly $108 billion forecast, whether China data-center compute revenue is included in later outlooks, and how memory costs affect gross margin.

Other developments to watch include the expansion of Vera Rubin platform operations across partner racks, AWS’s progress in deploying additional GPUs, and whether the AI infrastructure capital-mobilization plan becomes more concrete. The facts currently confirmed do not support a definitive conclusion about the long-term profitability of the AI industry or the direction of NVIDIA’s stock price. However, the announcement clearly showed that strong data-center revenue growth and a high next-quarter outlook exist alongside variables involving China, memory costs, and supply constraints.