Nvidia reports Q2 earnings as rising memory costs and AI demand collide

Nvidia is set to release its fiscal second-quarter 2027 results on August 26 after the bell, and the numbers Wall Street expects are frankly absurd by any historical standard. Analysts are looking for roughly $92B in revenue and an adjusted EPS of $2.09, which would represent approximately 97% year-over-year growth. The company itself guided for about $91B in revenue, give or take 2%, with non-GAAP gross margins hovering near 75%. Those figures exclude data-center compute revenue from China, which is worth keeping in mind when calibrating the scale of what Nvidia is actually moving. The memory problem nobody can ignore The elephant in the earnings call will be memory prices. Server DRAM contract prices surged 53-58% quarter-over-quarter in Q2 2026, according to TrendForce. High-bandwidth memory and DRAM costs from suppliers like SK Hynix, Samsung, and Micron have climbed steeply enough that Nvidia has already told customers to expect AI server prices to increase by more than 15% on configurations shipping in early 2027. That’s a meaningful bump for systems built around Grace Blackwell and the forthcoming Vera Rubin architectures. For context, Nvidia’s data center GPUs don’t just ne...