The second-quarter results of fiscal year 2027 confirm the strength of the artificial intelligence investment cycle, according to an analysis by Freedom24. Nvidia reported revenues of $96.2 billion, up 106% from the same period last year, with earnings increasing 126% to $59.7 billion. The Data Center segment, the main driver of the business, grew 117% to $89 billion. The company forecasts revenues of approximately $108 billion for the third quarter.
The revenue composition shows a diversification of demand for AI infrastructure. While the major cloud computing providers, the hyperscalers, generated $48.7 billion in revenues, the segment that includes specialized clouds, industrial companies, AI labs, and government projects grew 139% to $40.3 billion. This evolution indicates that investment is no longer concentrated in a restricted group of large technology companies.
Nvidia is seeking to expand its position in the value chain, moving from graphics processing units to computing systems, CPUs, networking, software, inference solutions, and AI factory infrastructure. The Vera Rubin platform, successor to the Blackwell architecture, is already in large-scale production. The company also announced, with major asset managers and financial institutions, initiatives to create computational capacity financing platforms capable of mobilizing over $500 billion in third-party capital.
Freedom24's analysis, conducted by João Lampreia, warns of risks associated with possible circular financing structures in the AI ecosystem, referring to the possibility of the company indirectly financing customers and holding direct stakes in companies like CoreWeave. Nvidia forecasts a reduction in gross margin from 75% to approximately 74% in the following quarter, at a time when the focus shifts from securing computational capacity to monetizing and delivering economic returns on investments. The company's shares maintain a positive long-term trend, consolidating near all-time highs, with resistance between $228 and $236 and an average analyst price target of $317.32 over 12 months.
