The US company Nvidia continues to benefit enormously from the global AI boom and doubled its sales to over $96 billion in the second quarter. The data center business in particular is driving profits to unprecedented heights.
The US group Nvidia reported sales of 96.2 billion dollars (around 82 billion euros) for the second quarter of the 2027 financial year, which ended on July 26, 2026. This corresponds to an increase of 106 percent compared to the same period last year. Net profit rose to almost 59.7 billion dollars (around 51 billion euros). The main driver of growth is, unsurprisingly, the global expansion of hardware for artificial intelligence.
The data center division in particular proved to be profitable and contributed $89 billion (around €76 billion) to the overall result. Cloud providers and technology companies continue to invest heavily in infrastructure. The new Vera CPUs, which were developed specifically for artificial intelligence as central processors, are increasingly being used. Delivery of the associated network technology is also starting worldwide.
Despite the high income, the group faces economic challenges. How Nvidia indicates that the gross margin was recently 75 percent. However, the company expects a decline to 71 to 72 percent in the fourth quarter. The primary reason for this is the sharp increase in prices for memory components, which are essential for the production of graphics processors.
In addition, the financial burden of liabilities is growing. The manufacturer has $33.5 billion (approximately 29 billion euros) in outstanding senior notes. There is also a program for short-term corporate bonds worth 25 billion dollars (around 21 billion euros). At the same time, competition in the market is increasing as rivals such as AMD and Google develop their own accelerator chips for data centers.
For the current third quarter, the semiconductor manufacturer is expecting sales of around 108 billion dollars (around 93 billion euros). In addition to the core business, the area of edge computing, in which data is processed directly at the point of origin, is also developing positively. Here, revenue rose by 27 percent to 7.2 billion dollars (around 6 billion euros). In order to meet demand in the long term and to support customers in financing expensive hardware, the group is breaking new ground. According to Nvidia, the following strategic measures were taken:
Research Snipers is currently covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More. Research Snipers has decade of experience in breaking technology news, covering latest trends in tech news, and recent developments.
The new Xbox Series X25 attracts fans with a chic green case in the style…
Google is expanding personalization for its search, Discover feed and News. A new interactive button…
Take-Two and Rockstar are using all possible means against the attackers operating under the name…
Microsoft is doubling the storage space for Exchange Online mailboxes in certain Microsoft 365 Business…
Tesla is preparing the European launch of the Tesla Semi electric truck. In September, the…
A number of new films and series are waiting for Netflix subscribers in September. New…