Nvidia Forecasts $91 Billion in Q2 Revenue as AI Chip Demand Stays Strong

Nvidia forecasted $91 billion in revenue for its fiscal second quarter of 2026, announced on May 20, 2026 alongside its first-quarter earnings report.

The guidance significantly exceeded the average Wall Street analyst estimate of approximately $86.84 billion. It represents roughly 95 percent year-over-year growth compared to the $46.7 billion reported in the same period of the previous year.

The guidance specifically excludes any anticipated data center compute revenue from China, as the company continues to navigate geopolitical restrictions and export controls.

Management indicated that demand for AI infrastructure remains strong, with the company's data center business accounting for 92 percent of total sales in the preceding quarter.

Despite the strong forecast, Nvidia's stock experienced volatility following the announcement, as investors weighed the company's high valuation and the sustainability of its rapid growth against the broader competitive landscape and macroeconomic factors.

The company has also been investing in startups like Decart, which focuses on software that allows AI models to move more easily between different chip architectures. This positions Nvidia not just as a hardware provider but as a broader platform for AI development.

Google and Blackstone announced a $25 billion joint venture on May 18, 2026 to build AI data center infrastructure using Google's proprietary TPUs, positioning them as an alternative to Nvidia's GPU-dominated market. The move signals that competition in the AI compute space is intensifying as demand continues to grow.