Credo and NVIDIA Report Strong AI Infrastructure Earnings
Credo Technology and NVIDIA posted significant revenue and profit increases driven by AI infrastructure demand, with strong forward guidance.
Key points
- Credo Technology reported fiscal Q1 2027 revenue of $479 million, up 114.7% year-over-year, with non-GAAP net income of $236.3 million.
- NVIDIA posted fiscal Q2 2027 revenue of $96.2 billion, up 106% year-over-year, with Data Center revenue reaching $89 billion.
- Credo guides for fiscal Q2 2027 revenue of $525–$535 million; NVIDIA projects fiscal Q3 2027 revenue of $108 billion, plus or minus 2%.
Credo Technology Group Holding and NVIDIA Corp. reported robust financial results in their latest earnings reports, both benefiting from accelerated demand for artificial intelligence infrastructure. Credo reported fiscal first-quarter 2027 revenue of $479 million, a 114.7% year-over-year increase, while NVIDIA posted fiscal second-quarter 2027 revenue of $96.2 billion, up 106% year-over-year.
Both companies demonstrated improved profitability, with Credo’s non-GAAP net income rising 140% to $236.3 million and NVIDIA’s non-GAAP gross margin expanding to 75% from 72.5% a year earlier. According to Zacks Investment Research, these results reflect strong operational execution and sustained investment in AI connectivity and computing solutions.
Credo’s Revenue Growth Accelerates
Credo’s revenue growth was driven by expanding adoption of its connectivity solutions in AI data centers. The company reported a 9.6% sequential revenue increase in the fiscal first quarter of 2027, indicating steady momentum. Management projects fiscal second-quarter 2027 revenue between $525 million and $535 million, implying approximately 10.6% sequential growth from the midpoint.
Profitability improved alongside revenue growth, as Credo’s non-GAAP net income reached $236.3 million in the fiscal first quarter, up 140% year-over-year. The company attributed the earnings outperformance to a broader product portfolio and increasing scale in high-margin AI infrastructure components.
NVIDIA Drives Growth Through Data Centers
NVIDIA’s fiscal second-quarter 2027 revenue of $96.2 billion was primarily driven by its Data Center segment, which grew 117% year-over-year to $89 billion. The company’s non-GAAP gross margin increased to 75%, reflecting improved operational efficiency and pricing power in high-performance computing hardware.
NVIDIA forecasts fiscal third-quarter 2027 revenue of $108 billion, plus or minus 2%, representing a 12% sequential increase from the midpoint. The company confirmed that its Vera Rubin platform is in full production, positioning it to address the next phase of AI infrastructure deployments.
Forward Guidance Reflects Sustained Demand
Both companies provided forward guidance that signals continued strength in AI-related spending. Credo’s projected second-quarter revenue suggests sustained sequential growth, while NVIDIA’s third-quarter outlook indicates accelerating revenue momentum. These figures underscore ongoing investment in AI infrastructure by major technology firms and cloud providers.
