---
title: "NVDA: Another 70% Next Year; AI compute money printer running hot!"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/dolphin/post/43616092.md"
description: "NVIDIA (NVDA.O) released its FY2027 Q2 results after the US close, in the early hours of Aug 27, 2026 Beijing time. The quarter ended Jul 2026.1) Data Center: $NVIDIA(NVDA.US) revenue was $89.0bn this quarter (+$13.8bn QoQ), beating the Street at $86.0bn. Growth was driven mainly by Blackwell shipments.The Rubin lineup starts shipping in Q3. It will gradually replace Blackwell and enable a product upgrade cycle..."
datetime: "2026-08-27T01:48:22.000Z"
locales:
  - [en](https://longbridge.com/en/dolphin/post/43616092.md)
  - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/43616092.md)
  - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/43616092.md)
author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)"
generator: "portal-rs"
---

# NVDA: Another 70% Next Year; AI compute money printer running hot!

NVDA released Q2 FY2027 results (quarter ended Jul 2026) after the U.S. close on Aug 27, 2026 Beijing time, with details as follows.

**1\. Data Center**: $NVIDIA(NVDA.US) **revenue was $89.0bn this quarter, a QoQ increase of $13.8bn**, beating the Street ($86.0bn). Growth was driven by Blackwell shipments. Rubin will start shipping in Q3 and gradually replace Blackwell through a product refresh.

The company revised disclosure starting this fiscal year, moving from 'Compute and Networking' to 'Hyperscalers' and 'ACIE' (industrial, enterprise, and sovereign customers). **Hyperscalers posted $48.7bn this quarter, up $5.7bn QoQ; ACIE delivered $40.3bn, up $8.1bn QoQ, the largest incremental driver**.

As large CSPs develop in-house silicon, NVDA is cultivating small and mid-sized customers, including public-sector and industrial markets. It also announced a $500bn compute financing platform.

**2\. Key incremental disclosures: the company highlighted three items this quarter — Commitments, Additional Commitments, and Guarantees**.

**1) Commitments: signed but not yet performed purchase/lease/investment obligations focused on upstream**. This figure appeared in the fine print of last quarter's 10-Q, and was fully elevated into the main disclosure this time.

The most notable shift is purchase commitments, which reached $279bn this quarter. **Last quarter NVDA disclosed $119bn in total, including $95bn in FY2027, with only $24bn across FY2028–FY2031**.

**The $160bn step-up this quarter mainly targets FY2028–FY2029 (CY2027–2028), implying NVDA has pre-locked HBM/DRAM capacity off the spot market. This functions as a contract floor for the memory supply chain and carries more weight than memory makers' own guidance**.

**2) Additional Commitments and Guarantees: both first-time disclosures, focused on downstream**.

**① Additional Commitments: obligations to help customers afford and build capacity, split into 'AI cloud agreements' and 'non-commenced leases signed on behalf of third parties'**.

**a) AI cloud cooperation: NVDA sells racks to neocloud players (CoreWeave/Nebius, etc.) and recognizes revenue -> it commits to repurchase/backstop that capacity (here, $36bn) -> it shares in revenue as neocloud resells to third-party clients**.

**b) Non-commenced leases signed for third parties: pure credit intermediation**. NVDA uses its own credit to secure land and power, then assigns to customers that cannot procure sites/power. It plans to transfer certain DC leases to third parties; if it cannot, $20bn of lease liabilities would revert to NVDA at lease commencement.

**② Guarantees:** balance-sheet backstops, currently two buckets: **AI cloud partner guarantees and SB Energy/PORTS-Pike**.

**NVDA provides guarantees for land, power, and related needs for AI cloud partners, with risk exposure around $3.5bn. For Ohio's PORTS-Pike campus (4.25GW), a 20-year lease will exclusively host NVDA capacity with OpenAI as lessee; there is also a 3.8GW expansion option**.

**Upon trigger, remedies sit with NVDA**: it may assume the lease, require SB Energy to re-lease, initiate a sale, allow termination, or defer for up to one year subject to specific project costs.

Excluding the newly added guarantees exceeding $100bn this Aug. Guarantees were previously limited, and the recently announced $500bn cloud financing pool has not yet been counted.

**3\. Guidance**: **NVDA guides Q3 FY2027 (3Q26) revenue of $108.0bn, up $11.8bn QoQ**, in line with raised buyside expectations ($108.0bn). **Next quarter GAAP GPM of 74%, down 100bps QoQ**, below the Street at 75%.

**Management, for the first time, provided FY2028 revenue guidance, expecting 70%+ growth — well above the market's ~40%**. The stock swung from -3% to about +5% after-hours. Under the prior 'Blackwell + Rubin' framework (CY2025–2027), cumulative revenue is lifted from $1.0tn to $1.2–1.3tn.

**4\. Operating metrics**: **Total revenue was $96.2bn, above raised buyside expectations ($93.0bn)**. QoQ growth of $14.6bn was driven almost entirely by Data Center. **GPM was 75%, essentially flat QoQ and in line with the Street (75%)**.

**Core OP reached $63.7bn, up 124% YoY**. Core OPM was 66%, primarily supported by outsized revenue growth.

**Click for the Trans (to be updated)**

**Dolphin Research view: Guarantees and locked capacity; the '70% guide' flips the script**

Jensen Huang had previously outlined **$1tn of cumulative Blackwell + Rubin revenue over CY2025–2027 (now effectively raised to $1.2–1.3tn under the FY2028 70% guide)**. Even with near-term topline beats, **the market is more focused on FY2027/FY2028 growth**.

On the print, GPM drew the most attention. **GPM was 75% this quarter with 74% guided for next quarter; we believe the dip reflects Rubin's ramp and upstream inputs such as memory**.

**Management then explicitly guided FY2028 (CY2027) revenue growth at 70%+, the single biggest positive this quarter, which drove the after-hours rally**.

The company also provided key incremental items: **Commitments (upstream), Additional Commitments (downstream), and Guarantees**. Most notably, it locked upstream memory supply for FY2028–FY2029 and is actively expanding downstream demand.

The prior pullback in the company and AI complex was driven by concerns around **China's open-source models and Anthropic's ARR slope**. With hyperscalers updating capex outlooks, Google, Meta, and Amazon raised full-year capex again, signaling continued strong AI chip demand.

Ticker Trends data shows Anthropic's slope moderating, while OpenAI continues to accelerate. Their ARR are key trackers for closed-source models and will influence expectations for hyperscaler capex.

Beyond this print, the market is watching:

**1) The $500bn compute financing platform**

On Aug 10, 2026, NVDA announced a partnership with six third-party investment firms (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, KKR) to **launch an AI factory financing platform exceeding $500bn**. It will support AI labs, enterprises, and cloud vendors in building infrastructure.

In certain projects, NVDA may provide residual value support capped at 25% per deal, evaluated prudently case by case. This is a structured leasing/project finance platform with a capped residual value guarantee, shifting most credit risk to the six financial institutions while retaining a 25% 'residual backstop'.

**2) Rubin's ramp**

This quarter's revenue was primarily from Blackwell. Rubin has entered full mass production but is still ramping; the true volume inflection is expected from Q4.

**The full-rack VR200 NVL72** integrates 72 Rubin GPUs (two dies per GPU) plus 36 Vera CPUs, with 260 TB/s NVLink aggregate bandwidth, 3.6 EFLOPS inference/2.5 EFLOPS training, and 100% liquid cooling.

There were rumors that the next-gen Rubin Ultra might be delayed. **IR recently indicated Rubin Ultra is on schedule**. Watch for management's latest updates.

**3) Competitive landscape**

NVDA remains the leader in AI chips with over 70% market share. That said, as workloads shift toward inference, its advantage has softened somewhat.

Inference requires less compute, prompting hyperscalers to build custom ASICs, and AMD to roll out its MI450X Helios rack-scale systems. These offerings primarily target inference.

The company already splits DC revenue into 'Hyperscalers' and 'ACIE'. Much of the incremental growth over the past two quarters did not come from large CSPs. Only majors can build custom ASICs, whereas SMBs cannot; Additional Commitments, Guarantees, and the $500bn platform support these customers.

**At the current market cap (~$5.1tn), NVDA trades at roughly 13x FY2028 post-tax core OP** (assuming 2-year revenue CAGR +85%, GPM 73%, tax rate 16.5%). **Management has already outlined the DC outlook; high growth in FY2026–FY2028 looks relatively secure, especially with the new 70%+ FY2028 guide**.

**A 13x PE is not demanding, but the multiple has yet to re-rate due to concerns over a potential capex rollback by big tech, durability of share/GPM, and whether earnings have peaked or growth will slow sharply**.

**These questions are not fully answered: big tech capex hinges on ARR and unit economics; share/GPM on AMD and custom ASIC progress**. NVDA has proactively split DC into Hyperscalers and ACIE, with ACIE now the key incremental contributor.

**With newly disclosed Commitments, Additional Commitments, Guarantees, and the $500bn platform, NVDA is clearly building an end-to-end framework: 'L1 supply commitments (upstream capacity) -> L2 additional commitments (sites/power/financeable cash flows) -> L3 guarantees (customer credit) -> L4 financing platform (access to long-term global capital)'. This is akin to a 'central bank' for compute and its financing**.

**Overall, the highlight is the explicit FY2028 revenue outlook (70%+ YoY)**. Near-term quarters matter less, and Rubin's true volume ramp starts in Q4.

**Given market concerns (big tech capex, competition, and NVDA's 'central bank' role in new cloud builds), the multiple is not rich, which supported the stock during the sector selloff**. The print added commitments and guarantees, showing NVDA is actively securing upstream supply and cultivating downstream demand.

**The direct FY2028 growth guide signals strong conviction**. Unless concerns abate, the stock may still face an overhang. Even on the prior 15x PE the market had used (implying around $250), there appears to be some upside.

Dolphin Research's NVDA earnings data and related charts:

\<End of article>

Dolphin Research NVDA historical coverage:

**Hot topics**

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Aug 28, 2025 call: [NVDA (Trans): GB300 already shipping; Rubin on track for mass production next year](https://longportapp.cn/en/topics/33413942)

Aug 28, 2025 earnings take: [NVDA: the universe's No.1 — anything short of explosive is a sin?](https://longportapp.cn/en/topics/33409211)

May 29, 2025 call: [NVDA (Trans): shipment mix to China unchanged](https://longportapp.cn/en/topics/27615752)

May 29, 2025 earnings take: [NVDA: do not doubt — still the universe's No.1](https://longportapp.cn/en/topics/30140007)

Risk disclosures and statements: [Dolphin Research disclaimer and general disclosures](https://support.longbridge.global/topics/misc/dolphin-disclaimer)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**