Nvidia Fiscal Q2: The AI Giant Answers to Losing Market Share

This evening, Nvidia effectively pulled a rabbit out of a hat by showing the GPU juggernaut may not need hyperscalers to the degree the market thinks. According to management, “There is sovereign AI, there are regional AIs, there are NeoClouds, there are AI startups at enterprises which represents about half of our business, and that is growing 100% a year.” This helped lead to an even bigger surprise than the current quarter’s beat, which is that Nvidia broke their typical guidance cadence by providing a guide for FY28, stating they will report 70% growth, or about $570 billion, compared to analyst estimates for $691 billion. Below, we discuss the main takeaway from Nvidia’s earnings report, which is that the AI infrastructure buildout is finally broadening beyond Big Tech.