Nvidia's half-year revenue surpasses $177 billion, driven by AI growth and mass production of next-gen chips

NVIDIA has released its half-year financial results for fiscal year 2027, revealing a total operating revenue of $177.837 billion, with a gross profit of $133.299 billion and a net income of $118.01 billion, representing a 161.1% year-on-year increase. The company also reported an operating cash flow of $74.421 billion and a free cash flow of $69.895 billion, with basic earnings per share at $4.87 and diluted earnings per share at $4.85. In the second quarter alone, NVIDIA achieved $96.221 billion in revenue, a 106% year-on-year increase, and a net income of $59.688 billion, up 126% from the previous year. The company's operating cash flow for the quarter was $24.077 billion, with free cash flow at $21.341 billion. Basic earnings per share reached $2.47, and diluted earnings per share were $2.46 billion. These results far exceeded market expectations, with the quarterly revenue significantly outperforming institutional forecasts. NVIDIA's data center business was the primary growth driver, generating $89.023 billion in revenue during the second quarter, a 117% year-on-year increase. Hyperscale cloud vendors' revenue doubled year-on-year, while ACIE revenue rose by 138% year-on-year. The edge computing segment also performed well, with revenue of $7.198 billion, up 27% year-on-year, driven by strong sales of Blackwell workstations. In the second quarter, NVIDIA returned approximately $26 billion to shareholders, with $99 billion in stock repurchase authorization remaining. NVIDIA has reached a key industrialization milestone with the next-generation NVIDIA Vera Rubin platform entering full mass production, and several major cloud vendors have begun deploying it. The company also launched its first CPU for AI agents, NVIDIA Vera, and the Groq 3 LPX inference accelerator has been fully produced. NVIDIA is expanding its AI ecosystem through collaborations, including an independent computing financing platform with several financial institutions, aiming to mobilize over $500 billion in third-party capital for global AI infrastructure. The company is also collaborating with the Japanese government to launch the world's first national-level AI infrastructure. In the field of physical AI and humanoid robots, NVIDIA introduced new development platforms such as NVIDIA Cosmos3 and Isaac GR00T humanoid robot reference design, continuously improving the underlying developer ecosystem. Looking ahead, NVIDIA expects third-quarter revenue for fiscal year 2027 to reach $108 billion, with a 2% fluctuation. GAAP and non-GAAP gross margins are projected to be 74% each, with a 50 basis point fluctuation. GAAP and non-GAAP operating expenses are expected to be $9.2 billion and $9 billion, respectively, with full-year GAAP and non-GAAP tax rates expected to be between 16.0% and 18.0%.