By Jason Nelson
3 min read
Nvidia shares rebounded in after-hours trading Wednesday after initially falling following the chipmaker’s fiscal second-quarter earnings report.
The stock closed regular trading down 1.59% at $209.66 before recovering to about $217 after hours, roughly 3.5% above its closing price.
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Nvidia’s quarterly revenue more than doubled to $96.2 billion, exceeding the $92.27 billion average analyst estimate reported by the Associated Press. Data Center revenue rose 117% to $89 billion, while adjusted earnings of $2.22 per share beat the $2.09 estimate. Gross margins held at 75%.
Nvidia founder and CEO Jensen Huang attributed the quarter’s growth to accelerating demand for artificial intelligence infrastructure:
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue, and demand is accelerating,” Huang said in a statement. “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.”
According to Chief Financial Officer Colette Kress, Nvidia has made $366 billion in multiyear artificial intelligence infrastructure commitments, including $279 billion for supply and capacity. The company also disclosed up to $108.5 billion in phased guarantees, which represent potential exposure rather than current losses or payments.
“We’ve partnered with our extensive network of suppliers to secure the critical components needed to meet demand for the next several years,” Kress said in a statement. “Our commitments increased from $119 billion last quarter to $279 billion, primarily related to the procurement of memory.”
Nvidia also reported $3.5 billion in maximum gross exposure under those agreements.
In August, Nvidia agreed to support the development of SB Energy’s PORTS-Pike Technology Campus in Ohio. The site is expected to host Nvidia infrastructure under long-term leases to OpenAI.
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“Each generation of NVIDIA infrastructure deployed at PORTS-Pike could represent approximately 1.5 million NVIDIA GPUs, or approximately $150 billion to $200 billion in NVIDIA revenue,” she wrote. “Over 20 years, we expect the site can support multiple infrastructure upgrade cycles.”
Including both arrangements, maximum gross guarantee exposure stands at $108.5 billion. The figure represents potential exposure rather than a current loss or payment.
Nvidia expects third-quarter revenue of $108 billion, plus or minus 2%. It forecast gross margins of 74%, plus or minus half a percentage point, compared with 75% in the second quarter.
Shipments of Hopper data-center products to China represented less than 1% of Data Center revenue during the quarter.
Despite the slip in its stock price, Huang said Nvidia is preparing to meet that demand with its next-generation computing platform.
“The AI infrastructure buildout is at full steam,” he said. “Vera Rubin, now in full production, was built to power exactly this moment.”
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