Nvidia CEO Jensen Huang attends the “Winning the AI Race” Summit in Washington D.C., U.S., July 23, 2025.
Kent Nishimura | Reuters
Nvidia reported better-than-expected earnings and revenue on Wednesday, and said sales growth this quarter will remain above 50%, signaling to Wall Street that demand for artificial intelligence infrastructure shows no sign of fading.
The stock, which is up 35% this 12 months after almost tripling in 2024, slipped in prolonged trading as data center revenue got here up wanting estimates for the second straight period.
Here’s how the corporate did, compared with estimates from analysts polled by LSEG:
- Earnings per share: $1.05 adjusted vs. $1.01 estimated
- Revenue: $46.74 billion vs. $46.06 billion estimated
Nvidia said it expects revenue this quarter to be $54 billion, plus or minus 2%, though that number doesn’t assume any H20 shipments to China. Analysts were expecting revenue of $53.1 billion, in response to LSEG.
The corporate’s 2026 second quarter results confirmed that Nvidia’s data center business stays entrenched in the worldwide AI buildout. Nvidia finance chief Colette Kress told analysts on an earnings call that the corporate expects between $3 and $4 trillion in AI infrastructure spending by the top of the last decade.
Overall company revenue rose 56% within the quarter from $30.04 billion a 12 months ago, Nvidia said. Yr-over-year revenue has now exceeded 50% for nine straight quarters, dating back to mid-2023, when the generative AI boom began to point out up in Nvidia’s results. Nonetheless, the second quarter marked Nvidia’s slowest period of growth during that stretch.
Through the quarter, after CEO Jensen Huang’s meeting with President Donald Trump, Nvidia signaled that it expected to get U.S. licenses to ship the H20 chip to China. The processor, which was custom built for sales to China, cost Nvidia $4.5 billion in writedowns and will have added $8 billion in second-quarter sales if it had been commercially available throughout the period, the corporate previously said.
Nvidia said it sold no H20 chips to China throughout the quarter, bu benefited from the discharge of $180 million value of H20 inventory to a customer outside of China. Kress said that Nvidia could ship between $2 billion and $5 billion in H20 revenue throughout the quarter if the geopolitical environment permits.
Net income increased 59% to $26.42 billion, or $1.05 per share, from $16.6 billion, or 67 cents per share, within the year-ago period.
Nvidia’s growth is driven by its data center business, centered around graphics processors, or GPUs, and complementary products for connecting and using them in large quantities. Revenue within the division rose 56% from the year-ago period to $41.1 billion, which was wanting a StreetAccount estimate of $41.34 billion within the quarter.
Kress said in a press release that $33.8 billion of Nvidia’s data center sales were for “compute,” or Nvidia’s GPU chips, which declined 1% from the primary quarter due to $4.0 billion less in H20 sales. Kress said $7.3 billion of knowledge center sales were from networking parts needed to construct Nvidia’s more complicated systems, which was nearly double the quantity from the year-ago period.
Large cloud providers make up about half of Nvidia’s data center business, the corporate said within the previous quarter. Those customers are currently buying Blackwell chips, the corporate’s latest generation.
Nvidia said that Blackwell sales rose 17% from the primary quarter. In May, Nvidia said its recent product line reached $27 billion in sales, accounting for about 70% of knowledge center revenue.
Nvidia’s earnings report comes a number of weeks after the corporate’s biggest customers, including Meta, Alphabet, Microsoft and Amazon, announced results. All 4 of those firms are spending tens of billions of dollars 1 / 4 in infrastructure buildouts as they race to develop AI models and services utilized by consumers and businesses.
Nvidia’s gaming division reported $4.3 billion in sales, up 49% from the year-ago period. The division was once Nvidia’s largest before the AI boom supercharged data center sales. Nvidia said throughout the quarter that its GPUs intended for gaming could be tuned to run certain OpenAI models on personal computers.
The corporate’s robotics division, which management has highlighted as a growth opportunity, stays a small a part of Nvidia’s business, with $586 million in sales throughout the quarter, representing 69% growth on an annual basis.
Nvidia said that its board has approved a further $60 billion in share repurchases, with no expiration date. Nvidia repurchased $9.7 billion in its stock throughout the quarter.
WATCH: What’s next for Nvidia in China
