Nvidia doubles revenue on surging AI demand, expands Amazon GPU deal
Nvidia reported Q2 revenue of $96.2 billion, up 106%, and announced Amazon will add 2 million more GPUs to AWS, expanding their partnership.
The company reported earnings before certain costs of $2.22 per share, beating Wall Street's forecast of $2.10. Revenue rose 106% from a year earlier to $96.22 billion, above the $92.17 billion estimate. Net income more than doubled to $53.95 billion from $24.76 billion a year ago.
Nvidia said data center revenue reached $89 billion in the quarter, up 117% year over year and accounting for 92% of total sales. Sales to AI clouds, industrial and enterprise customers grew 138% annually to $40.3 billion, while hyperscaler revenue totaled $48.7 billion.
For the current quarter, Nvidia forecast revenue of $108 billion, higher than the $104.2 billion analyst estimate. Chief Financial Officer Colette Kress said the company expects fiscal 2028 revenue growth of 70%, far above the Street's target of 44%, citing "customer forecasts" and supply constraints.
The Amazon deal, announced during Nvidia's quarterly earnings call, calls for 2 million Nvidia GPUs to be deployed in AWS data centers in 2027 and 2028. The chips include Nvidia Blackwell Ultra, Rubin and Rubin Ultra GPUs. This comes five months after Amazon agreed to deploy more than 1 million Nvidia GPUs starting this year. Nvidia said demand has exceeded expectations since then.
Neither company disclosed financial terms, but the deal is worth tens of billions of dollars based on GPU unit costs. Nvidia said its networking hardware, open models, CPUs, data processing software and robotics platform will also be integrated across AWS. Amazon plans to adopt Nvidia's physical AI stack for its warehouse robots, including Omniverse, Cosmos, Isaac and Jetson platforms. AWS will also offer Nvidia's Nemotron open models on Amazon Bedrock and SageMaker.
The expanded partnership comes as Amazon invests in its own AI chips, including Trainium and Graviton CPUs, to reduce dependence on Nvidia. Amazon has said its custom chip business crossed a $25 billion annualized revenue run rate, driven by $225 billion in commitments from AI labs.
Nvidia CEO Jensen Huang said during the call that "AI is now doing productive and useful work" and that "AI is generating profitable tokens." He also said he regretted not investing more in OpenAI and Anthropic before their expected IPOs, calling such investments "a once-in-a-generation opportunity."
Despite strong results, some investors remain wary of a bubble in the AI industry. Nvidia shares rose more than 4% in after-hours trading but have gained only 13% year to date. Emarketer analyst Jacob Bourne said "even extraordinary growth can fail to satisfy investors as scrutiny of AI spending and its financing intensifies." Nvidia faces competition from AMD and from customers like Google developing their own chips.
Nvidia said it has committed $279 billion to secure supply and manufacturing capacity, up from $119 billion last quarter, including $92 billion projected for the rest of this fiscal year and $87 billion in fiscal 2028.