Can AI Infrastructure Demand Sustain NVIDIA's Q3 Data Center Growth?

What happened

NVIDIA is scheduled to report third-quarter fiscal 2027 earnings on Nov. 17, with expectations high. In the second quarter of fiscal 2027, Data Center revenues rose 117% year over year and 18% sequentially to a record $89.02 billion, driven by strong demand for Blackwell Ultra infrastructure; ACIE (AI Clouds, Industrial and Enterprise) revenues were $40.31 billion, up 138% year over year and 25% sequentially. Third-quarter revenue guidance is $108 billion, plus or minus 2%, and the Zacks Consensus Estimate for Q3 data center revenues is $101.24 billion, indicating approximately 97.7% year-over-year growth and a 13.7% sequential rise. NVIDIA has commenced production shipments of its next-generation Vera Rubin platform and expects it to account for approximately 20% of Data Center revenues in the third quarter. Management noted on the last earnings call that the cloud industry's backlog exceeded $2 trillion, while capital expenditures by the top five hyperscalers are expected to reach nearly $800 billion in 2026 and $1.3 trillion in 2027; AWS has announced plans to deploy an additional 2 million NVIDIA GPUs between the third quarter of fiscal 2027 and the second quarter of fiscal 2029. NVIDIA expects its Q3 gross margin to be approximately 74%, reflecting higher component costs, and supply constraints and rising memory prices remain important concerns. Management expects sequential growth to be driven primarily by ACIE, with hyperscale growth expected to accelerate in the fourth quarter. Separately, Zacks Consensus Estimates for 2026 EPS were revised to $17.36 for Taiwan Semiconductor (up 29 cents over the past seven days), $9.41 for Teradyne (up 3.3% over the past 30 days) and $8.97 for Texas Instruments (revised upward from $8.42 over the past 30 days). The earnings have not yet been reported; Q3 performance figures in the article are expectations.

Impact and signal

Affected components and suppliers

Source and time

Source: Yahoo Finance — TXN · 11/13/2026 · View original source