Nvidia Corp., the chipmaker at the centre of the global artificial intelligence (AI) boom, reported better-than-expected second-quarter earnings and issued a bullish sales outlook, reinforcing expectations of sustained spending on AI infrastructure.
The company's Q2 revenue more than doubled year-on-year (YoY) to $96.22 billion, surpassing analysts' estimate of $92.17 billion. Earnings per share (EPS) came in at $2.22.
Nvidia's data-centre revenue surged 117% YoY to $89 billion, accounting for nearly 93% of the company's total revenue. The growth was supported by robust demand from hyperscalers, enterprises and sovereign AI initiatives.
For the third quarter of fiscal 2027, Nvidia guided revenue at $108 billion, plus or minus 2%, implying sequential growth of around 12%. The guidance excludes data-centre compute revenue from China. The company expects gross margin at 74%, plus or minus 50 basis points, reflecting some moderation as newer platforms ramp up.
What Nvidia's Earnings Mean For Indian IT Companies
Nvidia's strong results suggest that hyperscalers and enterprises continue to spend aggressively on AI infrastructure, a trend that could have positive implications for the deal pipeline of Indian IT services companies.
However, the impact on Indian IT companies is likely to be more gradual, while AI-led pricing pressure remains a key headwind for the sector.
“Nvidia's Q2 results reinforce strong AI infrastructure spending by hyperscalers and enterprises, supporting demand for cloud, data, engineering and AI implementation services,” Choice Institutional Equities analysts Kunal Bajaj and Shreya Mehra said.
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According to the analysts, the revenue benefits for Indian IT companies are likely to materialise with a lag compared with semiconductor companies and hyperscalers, given their position further down the AI value chain.
At the same time, the evolution of AI from infrastructure investment towards agentic AI, inference and physical AI could significantly expand the addressable market for IT services. This shift is expected to create opportunities in AI transformation, engineering, system integration and managed services.
Overall, Nvidia's results provide a positive read-through for the broader AI ecosystem and suggest that elevated technology spending by global enterprises and hyperscalers remains intact.
For Indian IT companies, this could translate into stronger AI- and cloud-led deal opportunities, although the pace of revenue conversion and the impact of AI-driven pricing pressure will remain key factors to watch.
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