Nvidia Beats Q2 Expectations as AI Data Center Revenue Surges
Nvidia reports another quarter of massive revenue growth driven by soaring demand for its AI chips, despite a post-earnings stock dip. The company also reveals strong forward guidance and upcoming shipments of its next-generation Blackwell processor.
Nvidia reports fiscal second-quarter earnings that easily beat Wall Street expectations, generating $30.04 billion in revenue and 68 cents per share in adjusted earnings. The chipmaker's massive growth continues as net income more than doubles to $16.6 billion compared to the same period last year. Despite these strong financial results, Nvidia shares fall 8% in extended trading.
The company's data center segment drives this impressive performance, climbing 154% annually to reach $26.3 billion and accounting for 88% of total sales. Nvidia remains the primary beneficiary of the artificial intelligence boom, with tech giants like Microsoft, Meta, and Alphabet purchasing its H100 and H200 chips for generative AI applications. Networking products contribute an additional $3.7 billion to the quarterly revenue.
Looking ahead, Nvidia provides stronger-than-expected guidance of approximately $32.5 billion in revenue for the current quarter. The company also confirms that it ships samples of its next-generation Blackwell chip during the quarter and makes manufacturing efficiency improvements to the design. Executives expect to generate several billion dollars in Blackwell revenue by the fourth quarter.