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NVIDIA and AMD Expand Data Center Revenues on AI Demand

By Stocks Desk · 2026-09-10 · 2 min read
A close-up view of a complex silicon microchip resting on a dark surface
Illustration: Tradingbird

NVIDIA reports Q2 revenue of $96.2 billion while AMD doubles data center sales, both citing sustained AI infrastructure demand.

NVIDIA and Advanced Micro Devices have reported quarterly results that highlight the scale of current artificial intelligence infrastructure spending. NVIDIA generated $96.2 billion in revenue for the second quarter of fiscal 2027, a 106% increase year over year. AMD posted $11.5 billion in revenue for the second quarter of 2026, up 50% from the prior year. Both companies attribute this growth primarily to rising demand for data center components.

NVIDIA’s data center segment accounted for $89 billion of its total revenue, representing a 117% year-over-year increase. The company reported GAAP and non-GAAP gross margins of 75%, an improvement from approximately 72.5% a year earlier. AMD’s data center sales doubled year over year, driven by strong adoption of its EPYC server processors and Instinct accelerators. These figures indicate that both firms are converting increased hardware orders into significant top-line growth.

NVIDIA Maintains Profit Leadership

NVIDIA is projecting third-quarter fiscal 2027 revenue of approximately $108 billion, with a variance of plus or minus 2%. This guidance implies a 12% sequential increase from the previous quarter's midpoint. The company states that its Vera Rubin platform is now in full production, supporting continued expansion in high-performance computing. The sustained margin expansion suggests that NVIDIA is effectively managing the costs associated with its rapid revenue growth.

AMD Accelerates Data Center Ramp-Up

AMD expects third-quarter 2026 revenue to reach $13 billion, plus or minus $300 million. This target represents a 41% year-over-year increase and a 13% sequential gain. The company notes that its Helios platform has entered its initial ramp-up phase. Management projects that data center revenues will continue to improve in the latter half of 2026, supported by scaling of its accelerator products.

Margin Trajectories Diverge Slightly

While NVIDIA maintains a 75% gross margin, AMD projects a 56% non-GAAP gross margin for the upcoming quarter. This difference reflects the distinct cost structures and market positions of the two firms. AMD indicates that profitability is expected to improve steadily as its new platforms gain volume. The material sourced from GN markets earnings highlights these divergent paths in margin expansion despite similar revenue growth drivers.

Based on reporting by GN markets/earnings (en-US), compiled by the Tradingbird desk.

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