Nvidia reported quarterly results Wednesday that beat Wall Street forecasts on both earnings and revenue, while issuing stronger guidance for the current period. Despite the upbeat report, shares slid in after-hours trading as data center sales once again fell short of consensus estimates.
For the fiscal second quarter, Nvidia posted adjusted earnings of $1.05 per share on revenue of $46.74 billion, topping analyst estimates of $1.01 per share and $46.06 billion, according to LSEG. The company projected third-quarter revenue of $54 billion, plus or minus 2%, ahead of the Street’s $53.1 billion forecast. Notably, that guidance does not assume any shipments of the H20 processor to China, which remains subject to U.S. export restrictions.
Nvidia confirmed that it sold no H20 chips to China during the quarter but released $180 million worth of H20 inventory to a customer outside of the country. CFO Colette Kress told analysts the company could see between $2 billion and $5 billion in H20-related revenue this quarter if licensing approvals allow shipments to resume. Nvidia has previously said the export restrictions forced a $4.5 billion writedown, and that the H20 could have contributed as much as $8 billion in additional sales last quarter.
Overall revenue surged 56% year over year from $30.04 billion, marking the ninth consecutive quarter of 50%+ growth since the generative AI boom began in 2023. Still, it was the slowest growth pace in that stretch. Net income rose 59% to $26.42 billion, or $1.05 per share, from $16.6 billion, or 67 cents, a year earlier.
Nvidia’s data center division, the core of its AI business, generated $41.1 billion in revenue, up 56% from a year earlier but below the StreetAccount estimate of $41.34 billion. Of that, $33.8 billion came from GPU “compute” sales, down 1% from the prior quarter due to lower H20 volumes. Another $7.3 billion came from networking products, nearly double year-ago levels.
The company highlighted momentum in its Blackwell GPU line, which accounted for roughly 70% of data center revenue and rose 17% from the prior quarter, reaching $27 billion in sales since its May launch. Major cloud providers—including Microsoft, Alphabet, Meta, and Amazon—remain Nvidia’s largest customers, investing tens of billions each quarter in AI infrastructure.
Beyond data centers, Nvidia reported $4.3 billion in gaming revenue, up 49% from last year, as GPUs tuned for running AI models on PCs gained traction. Robotics revenue, though still small, grew 69% to $586 million.
Looking ahead, Kress said Nvidia expects global AI infrastructure spending to total $3 trillion to $4 trillion by the end of the decade, underscoring the company’s confidence in long-term demand.
Nvidia also announced a massive new shareholder return plan. The board authorized an additional $60 billion in share repurchases, with no expiration date, after buying back $9.7 billion in the latest quarter.
Shares of Nvidia, up 35% year-to-date after nearly tripling in 2024, fell more than 3% in extended trading following the report.
Pump Radar
Stock Alerts