NVIDIA Corporation NVDA is set to report its second-quarter fiscal 2027 earnings on Aug. 26, and expectations are high.
The company continues to dominate the artificial intelligence (AI) computing market and remains one of the biggest beneficiaries of the ongoing AI boom. NVIDIA’s powerful data center graphics processing units (GPUs) have become the backbone of modern AI infrastructure, supporting everything from cloud computing to generative AI applications. With enterprises and cloud providers continuing to increase AI spending aggressively, NVIDIA appears well-positioned to deliver another impressive quarter.
Expectations From NVIDIA’s Q2 Results
NVIDIA expects second-quarter fiscal 2027 revenues of roughly $91 billion (+/-2%), highlighting the massive acceleration in AI adoption worldwide. This represents a remarkable leap from prior years as more businesses allocate significant capital toward AI-driven growth initiatives. The Zacks Consensus Estimate currently stands at $91.8 billion, suggesting a staggering 96.4% jump from the year-ago figure and nearly 11.5% sequential growth.
The consensus mark for second-quarter earnings is pegged at $2.09, implying a year-over-year surge of 99.1% and sequential growth of 11.8%. Earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.52%.
Click here to know how NVDA’s overall fiscal second-quarter results are likely to be.
NVIDIA Corporation Price and EPS Surprise
NVIDIA Corporation price-eps-surprise | NVIDIA Corporation Quote
Datacenter: NVIDIA’s Key Growth Catalyst
NVIDIA’s data center business has been a major reason for its recent growth. In the first quarter of fiscal 2027, the segment’s revenues jumped 92% year over year and 21% sequentially to $75.25 billion.
This strong trend is expected to have continued in the second quarter. The Zacks Consensus Estimate for data center revenues is pegged at $85.14 billion, indicating an approximately 107.2% year-over-year increase and a 13.1% sequential rise. The main reason behind this strength is the massive AI infrastructure spending by enterprises and hyperscale cloud providers, which rely heavily on NVIDIA’s GPUs to train and deploy AI models.
The company's newest Blackwell and Vera Rubin AI platforms are seeing strong customer adoption due to their superior performance and energy efficiency. These chips are widely used for training large language models and delivering real-time AI responses efficiently. Major technology companies like Microsoft, Amazon and Google continue expanding their use of NVIDIA chips across AI-focused products and cloud services, which is expected to have boosted second-quarter performance.
Beyond technology companies, NVIDIA’s chips are increasingly being adopted across industries such as healthcare, automotive, manufacturing and cybersecurity. Its AI platforms help power applications, including digital assistants, recommendation engines, autonomous systems and language translation tools. As AI adoption becomes more widespread, NVIDIA’s importance within the broader technology ecosystem is only expected to grow further.
NVDA’s Zacks Rank and Other Stocks to Consider
Currently, NVIDIA carries a Zacks Rank #2 (Buy).
Taiwan Semiconductor Manufacturing Company TSM, Lumentum Holdings Inc. LITE and Teradyne Inc. TER are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Taiwan Semiconductor, Lumentum and Teradyne each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Taiwan Semiconductor’s 2026 earnings has moved upward by 11 cents over the past 30 days to $16.45 per share, calling for an increase of 54.5% year over year. Taiwan Semiconductor’s shares have climbed 77.9% in the trailing 12 months.
The Zacks Consensus Estimate for Lumentum’s fiscal 2027 earnings has been revised upward to $21.27 per share from $18.16 over the past 30 days. The consensus mark for the bottom line indicates a year-over-year increase of 145.3%. Lumentum shares have surged 602.3% over the past year.
The Zacks Consensus Estimate for Teradyne’s 2026 earnings is pegged at $9.10 per share, revised upward by 26.4% over the past 30 days and suggests a year-over-year jump of 129.8%. Teradyne shares have soared 221% over the past year.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Teradyne, Inc. (TER): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
Lumentum Holdings Inc. (LITE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).