Shares in Nvidia Corporation (Nasdaq: NVDA) are up in premarket trading on Thursday, one day after the world’s largest technology company announced not only better-than-expected quarterly results, but full fiscal year guidance that surprised even many AI bulls.
Separately, there are reports the company has offered to buy the popular AI repository Hugging Face for almost $13 billion. Here’s what you need to know.
Nvidia’s revenue surges more than 100% in Q2 2027
Yesterday, Nvidia announced its second-quarter results for fiscal 2027.
The company reported revenue of $96.2 billion and data center revenue of $89.0 billion, representing year-over-year growth of 106% and 117%, respectively. Adjusted earnings per share were $2.22, up around 120% year over year.
To put those numbers into further context, they handily beat analysts’ already-lofty expectations. As noted by CNBC, LSEG analysts were expecting revenue of $92.17 billion and an adjusted EPS of $2.10.
Announcing the figures, Nvidia CEO Jensen Huang argued that artificial intelligence has now “reached its inflection point.”
More importantly to investors, Huang added that AI demand “is accelerating” and, crucially, the majority of Nvidia’s data center buildout business is no longer dependent on just one customer.
“This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world,” Huang said.
Though Huang did not name the “one lab,” he was almost certainly referring to OpenAI, which has massive data center contracts with Nvidia.
In recent years, investors have become increasingly concerned that much of Nvidia’s data center business depended on just a few large clients. Yesterday, Huang signaled that is changing.
But perhaps even more important than the company’s Q2 results was Nvidia’s forecast for its fiscal year 2028, which begins in February 2027.
As noted by CNBC, Nvidia CFO Colette Kress told analysts that the company expects significant revenue growth in fiscal 2028 to the tune of 70%, underscoring Huang’s assertion that AI demand is accelerating.
Reports say Nvidia will acquire AI repository Hugging Face for $12.9 billion
Nvidia latest financial results weren’t the only news about the company yesterday. The Information reported that Nvidia has agreed to buy the popular AI repository Hugging Face for $12.9 billion.
Hugging Face is essentially the GitHub of the AI world, where different open AI models are hosted and made available for download.
The platform serves as a major backbone of the open-weight and open-source AI communities (as opposed to the closed-source, proprietary models from OpenAI, Anthropic, and Google).
And increasingly, it looks as if Nvidia’s business may become more dependent on those open LLMs in the future.
That’s because, as noted by TechCrunch, America’s proprietary AI players, like OpenAI and Google, are currently working to develop their own AI chips tailored for their proprietary systems, in order to reduce dependence on Nvidia.
If that happens, Nvidia will need to increasingly rely on the open-weight and open-source AI communities for its business. Buying Hugging Face would give Nvidia much more leverage over those communities going forward.
Perhaps it’s little surprise, then, if the reports of Nvidia acquiring Hugging Face are accurate, that Huang specifically pointed in Nvidia’s earnings announcement to a “golden age of new AI labs and startups” with “a thriving open-model ecosystem.”
Fast Company has reached out to Nvidia and Hugging Face for comment.
Nvidia’s stock price rises on earnings
After Nvidia’s earnings beat, its rosy 2028 outlook—and rumors that the company is reportedly acquiring Hugging Face—its stock price is up around 6% as of the time of this writing, to about $222.25 per share in pre-market trading.
NVDA’s shares closed at $209.66 yesterday.
Year to date, NVDA shares have grown 12.4% as of yesterday’s close. Over the past 12 months, they have increased by 15%.
While that increase is nothing to sneeze at, it also represents a slowing of the stock’s rapid growth that was seen from mid-2023 to mid-2025.
This story is developing…