Nvidia Q2 earnings were released on August 27, confirming revenue of USD 46.7 billion, a 56 % year-over-year increase and 6 % above Q1, and adjusted earnings per share of USD 1.05. Data center revenue rose to USD 41.1 billion, up 56 % annually, with Blackwell platform revenue growing 17 % quarter-to-quarter. Gross margins held firm at about 72 %. Despite strong fundamentals, shares dipped over 3 % in after-hours trading due to slightly soft data center performance and export restrictions affecting China.
Nvidia Q2 earnings show AI power, but the market fixated on China risks and data center softness.
Market Response
Investors delivered a mixed verdict on Nvidia Q2 earnings. Even with record revenue, the stock fell 3-4 % as analysts digested soft data center momentum and limited H20 chip sales to China. Market experts flagged geopolitical uncertainty and export restrictions as emerging risks. Amid those headwinds, Nvidia introduced a fresh USD 60 billion stock buyback program, sending a signal of confidence amid volatility.
Automotive and Diversification
Automotive revenue surged 69 % to USD 586 million, powered by demand in self-driving systems and the debut of the Thor SoC optimized for robotics. This diversification softens reliance on core AI infrastructure and aligns Nvidia with growing autonomy trends. While small in scale, it signals the company’s stronger footprint beyond traditional GPU markets.
Cash Return Strategy
Nvidia continues to return capital to shareholders. In Q2 it distributed USD 24.3 billion via repurchases and dividends. The board also approved an additional USD 60 billion buyback authorization. Analysts are divided, some see this as investor-friendly discipline, while others urge reinvestment in R&D and next-gen AI hardware amid long-term demand uncertainty.
Key Details
Here are the essential figures for Nvidia’s second fiscal quarter:
- Revenue: USD 46.7 billion (up 56 % YoY)
- Data Center revenue: USD 41.1 billion
- Adjusted EPS: USD 1.05
- Gross margin: ~72 %
- Automotive revenue: USD 586 million (up 69 %)
- Stock Buyback Authorization: Additional USD 60 billion approved
- China exposure: No H20 chip sales, geopolitical risk highlighted
Nvidia Q2 earnings affirm its leadership in AI infrastructure even as global trade and product-mix volatility prompt investor caution. Full press release here.
