NVIDIA Corporation reported a 56% year-over-year jump in its data center revenues in the second quarter of fiscal 2026, though the article does not state the exact dollar amounts. The data center segment accounted for roughly 89% of total revenues in the quarter, with the precise total revenue figure likewise not stated. Zacks highlights the result as evidence of how critical data center business has become to NVIDIA´s overall performance.
The surge was driven mainly by strong adoption of the new Blackwell platform and continued orders from hyperscalers including Microsoft, Google and Amazon. Zacks cites ongoing global buildouts of Artificial Intelligence factories and increased demand from governments and enterprises seeking sovereign Artificial Intelligence infrastructure as likely near-term tailwinds. NVIDIA´s networking products, including NVLink and Spectrum-X, also contributed by improving data movement inside Artificial Intelligence clusters and strengthening the company´s full-stack appeal.
The U.S. government´s recent approval to export H20 Artificial Intelligence chips to China is expected to further support data center revenue, and the company is reportedly developing less powerful Blackwell-architecture chips for that market. Zacks´ consensus for fiscal 2026 data center revenues is given as not stated in dollar terms in the article, but is described as implying about 57% year-over-year growth. From a valuation and estimates perspective, NVIDIA traded at a forward price-to-earnings ratio of 32.23 versus the sector average of 28.62, and the Zacks consensus for fiscal 2026 and 2027 earnings implies increases of roughly 48.5% and 38.9%, respectively. NVIDIA carried a Zacks Rank #2 (Buy) at the time of publication.
Rivals are attempting to gain share. Advanced Micro Devices is seeing growing adoption of its MI300X GPUs and is building a software stack to compete in cost-sensitive or specialized workloads. Intel is promoting its Gaudi 3 Artificial Intelligence chips alongside CPUs and other accelerators and is working with major cloud providers to expand adoption. The article frames NVIDIA´s deep integration of hardware, networking and software as a competitive advantage that could help sustain momentum, while noting that rivals are actively pursuing alternatives.
