>>> NVIDIA beats by $0.13, beats on revs; guides Q3 revs above consensus

NVIDIA beats by $0.13, beats on revs; guides Q3 revs above consensus

Reports Q2 (Jul) earnings of $2.22 per share, excluding non-recurring items, $0.13 better than the FactSet Consensus of $2.09; revenues rose 105.9% year/year to $96.22 bln vs the $92.27 bln FactSet Consensus.
- Data Center segment revenue grew 117% yr/yr and 18% sequentially to a record $89.0 bln. Growth was driven by the ramp of its Blackwell Ultra infrastructure.
  - Hyperscale revenue more than doubled from a year ago and increased 13% sequentially on the strength of Blackwell Ultra.
  - ACIE revenue increased 138% from a year ago and 25% sequentially driven by end-demand from AI natives, enterprises, and sovereign customers, as well as hyperscalers utilizing AI clouds.
  - Shipments of Data Center Hopper products to China during the quarter were less than 1% of Data Center revenue.
- Edge Computing segment revenue grew 27% yr/yr and 13% sequentially to $7.2 bln. Growth was driven by strong sales of Blackwell workstations, partially offset by slower consumer PC sales that were tempered by elevated memory and systems prices.
- Non-GAAP gross margin improved to 75.0% vs 72.5% a year ago and was flat sequentially at 75.0% in Q1 (Apr). Co had guided to Q2 non-GAAP gross margin of 74.5-75.5%.
Co issues upside guidance for Q3 (Oct), sees Q3 revs of $105.84-110.16 bln vs. $104.86 bln FactSet Consensus. Co guides to Q3 non-GAAP gross margin of 73.5-74.5%.
- Note: Co is not assuming any Data Center compute revenue from China in its Q3 outlook.
"AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue," said Jensen Huang, founder and CEO of NVIDIA. "And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment."

NVIDIA: Memory-related stocks moving higher on NVDA increase to commitments

NVDA says it continues to make strategic commitments across its supply, infrastructure, and partner ecosystems. Co says it has partnered with suppliers to secure the critical components needed to meet demand for the next several years. Co says its commitments increased from $119 bln last quarter to $279 bln, primarily related to the procurement of memory.
Memory-related stocks moving higher after hours on the comments: SNDK +2.8%, SKHY +1.9%, MU +1.4%.

AWS, NVIDIA expand AI partnership; AWS to deploy 2 mln additional NVIDIA GPUs in 2027-2028

AWS and NVIDIA said AWS plans to add 2 mln more NVIDIA Blackwell Ultra, Rubin and Rubin Ultra GPUs across its global infrastructure as AI demand runs ahead of prior forecasts.
The expanded collaboration also includes NVIDIA Vera CPU-based infrastructure on AWS, deeper integration with AWS Nitro and Elastic Fabric Adapter, and continued support for NVIDIA Nemotron open models on Amazon Bedrock and SageMaker.
The companies said they will build AI factories for the U.S. government, including 100,000 GPUs on secure AWS infrastructure for federal and national-security workloads.
AWS also plans to expand Blackwell capacity for Amazon EC2 G7 instances, while Amazon Robotics adopts NVIDIA physical AI technology for warehouse automation and next-generation robots.

NVIDIA on earnings call: Guides FY28 revenue above consensus; provides cap-ex outlook for top five hyperscalers

On earnings call, co says it expects to grow revenue by approximately 70% in FY28 (vs FactSet consensus of +45%). This is a supply constrained outlook.
Co also says with cloud industry backlog now greater than $2 trillion, CapEx by the top five hyperscalers is expected to reach nearly $800 bln in 2026 and $1.3 trillion in 2027.