NVIDIA posts $96.22B Q2 revenue, flags memory costs and debt
NVIDIA just posted huge numbers for its second quarter: $96.22 billion in revenue, more than double last year, and beating all expectations. Profits per share also topped forecasts.
But even with this AI-powered success, NVIDIA is waving a caution flag about two things: rising memory costs and growing debt.
NVIDIA expects 71-72% gross margin
Thanks to the global rush for AI tech, memory prices are going up, and NVIDIA says its gross margin to decline and bottom out in the fourth quarter of fiscal 2027, at 71% to 72%.
CFO Colette Kress said the company wanted to address the issue directly.
As of July 26, NVIDIA had $33.5 billion in senior notes outstanding, alongside a $25 billion commercial paper program ($15 billion of debt is due within one to five years), which could put some pressure on its cash flow if not carefully managed.