Introduction
Nvidia (NASDAQ: NVDA) delivered another record quarter, slightly ahead of Wall Street forecasts, as demand for its AI chips continues to reshape global technology markets. The company reported adjusted earnings of $1.05 per share on revenue of $46.74 billion, marking a 56% year-over-year surge.
Notably, without one-off sales of previously reserved H20 chips to customers outside China, earnings per share would have been $1.04.
Data Center Strength Drives Growth
Nvidia’s data center division, which fuels the bulk of its business, generated $41.1 billion in revenue — the highest ever recorded. Although this came in just below analyst expectations, the strong push for AI infrastructure among Big Tech firms continues to sustain momentum.
Industry giants like Microsoft and Alphabet, both of which recently pledged substantial AI spending, are key drivers of this growth. According to Reuters, Nvidia remains the central supplier in the AI acceleration race.
Stock Buyback Boost
The company also announced its board has approved an additional $60 billion stock repurchase program, signaling strong management confidence in Nvidia’s long-term outlook.
Despite the impressive results, Nvidia shares slipped about 3% in after-hours trading, though the stock has still surged over 35% in 2025 so far, based on Nasdaq data.
AI Outlook and Forecasts
Looking ahead, Nvidia projected third-quarter revenue of $54 billion (±2%), above market expectations of $53.8 billion.
- China Opportunity: CEO Jensen Huang noted that China could represent a $50 billion market opportunity for Nvidia this year, depending on regulatory approvals.
- H20 Chip Sales: The company’s guidance does not account for potential H20 sales in China, which may resume under a newly announced 15% revenue-sharing agreement with U.S. authorities.
- Blackwell Chips: Discussions are also ongoing to obtain licenses for Nvidia’s next-generation Blackwell chips, which are more powerful than the currently restricted H20 models.
Key Takeaways
- Q2 revenue reached a record $46.74 billion, up 56% YoY.
- Data center revenue surged to $41.1 billion, slightly missing Street estimates.
- EPS came in at $1.05, supported by one-time H20 chip sales.
- Nvidia announced a $60 billion stock buyback program.
- Q3 revenue guidance of $54 billion signals strong AI-driven momentum.
Conclusion
Nvidia’s latest earnings reaffirm its position as the global leader in AI semiconductors, with strong demand continuing to outpace expectations. As the company deepens its footprint in data centers and eyes regulatory clarity in China, Nvidia remains one of the most critical players shaping the future of AI.
