Credo and NVIDIA Report Strong AI-Driven Revenue Gains
Credo Technology and NVIDIA both posted double-digit sequential revenue increases, driven by sustained demand for AI infrastructure components and data center expansion.
Credo Technology Group Holding Ltd. reported fiscal first-quarter 2027 revenue of $479 million, a 114.7% year-over-year increase. Non-GAAP net income rose 140% to $236.3 million, indicating that profitability is expanding faster than the top line. This performance reflects a surge in demand for the company’s high-speed connectivity solutions used in AI data centers, according to the Sept. 1 press release.
NVIDIA Corporation recorded fiscal second-quarter 2027 revenue of $96.2 billion, up 106% year-over-year. The Data Center segment accounted for $89 billion of that total, growing 117% annually. Non-GAAP gross margin improved to 75% from 72.5% a year earlier, allowing the company to convert revenue growth into higher earnings. This was reported in the Aug. 26 press release.
Credo guides for continued sequential growth
Management projects fiscal second-quarter 2027 revenue between $525 million and $535 million. The midpoint implies roughly 10.6% sequential growth from the prior quarter. This outlook suggests that demand for Credo’s portfolio of connectivity products remains robust as AI infrastructure investments continue to scale. The company attributes this stability to its expanded product line addressing specific infrastructure needs.
NVIDIA projects higher margins and production scale
NVIDIA expects fiscal third-quarter 2027 revenue of approximately $108 billion, plus or minus 2%. This represents a 12% sequential increase from the previous quarter’s midpoint. The Vera Rubin platform is already in full production, positioning the company to capture the next wave of AI spending. Sustained high gross margins indicate that the company is maintaining cost efficiency while scaling up production volumes.
Scale differentiates the two earnings profiles
While Credo exhibits a higher percentage growth rate, NVIDIA operates at a significantly larger scale. NVIDIA’s absolute revenue increase dwarfs Credo’s, and its margin expansion provides a stronger buffer for earnings. According to GN markets/earnings (en-US), both companies are benefiting from the same macro trend, but their positions in the supply chain yield different financial baselines. Credo’s smaller revenue base makes its percentage gains appear more dramatic, yet NVIDIA’s absolute contribution to the AI ecosystem remains dominant.
