$96B quarter, Data Center now 92% of revenue — where does deceleration actually show up?

$NVDA Q2 FY27: $96.2B revenue, +106% YoY and +18% QoQ, beating consensus by 4.5% and their own guide by 5.7%. Data Center revenue alone was $89.0B, +117% YoY, and is now ~92% of total revenue — this is basically a data-center company at this point. Gross margin held at 75.0% (GAAP and non-GAAP), EPS $2.46 GAAP / $2.22 non-GAAP. Guidance for Q3 FY27 is $108B, implying growth is still accelerating in dollar terms even as the YoY percentage naturally starts to lap tougher comps. The concentration risk is real — if data center demand even normalizes to 'merely strong,' the stock reprices hard given how much of the thesis is priced for continued acceleration. Long, but sizing for that eventual air pocket.

3 comments

Comments (3)

u/capex_carla12h
Concentration risk cuts both ways — also means one hyperscaler pulling back moves the whole stock a lot more than it used to
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u/value_vic13h
Q3 guide of $108B still implies acceleration in dollars even if % decelerates. Priced for perfection though.
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u/bagholder_ben13h
92% of revenue from one segment is the risk everyone knows about and buys anyway lol 😅
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