Nvidia delivered stronger-than-expected second-quarter results on Wednesday, though revenue from its data center business came in just shy of forecasts as U.S. limits on H20 chip exports to China took a toll.
Shares of NVIDIA Corporation (NASDAQ:NVDA) slipped roughly 2% in after-hours trading following the release.
For the quarter ending July 31, the chipmaker posted adjusted earnings of $1.04 per share on revenue of $46.7 billion. That beat analyst projections, which called for earnings of $1.01 per share on sales of $46.1 billion, according to Investing.com.
The data center segment, Nvidia’s largest revenue driver and a critical supplier of AI infrastructure, generated $41.1 billion, up 56% from a year earlier. However, it narrowly missed Wall Street’s $41.34 billion estimate, weighed down by the China restrictions. “There were no H20 sales to China-based customers in the second quarter,” the company noted.
Meanwhile, the Blackwell Data Center platform — the successor to Hopper and a key growth engine — posted a 17% sequential increase in revenue.
Nvidia’s gaming business also turned in strong results, with sales climbing 49% to $4.3 billion.
Looking ahead, the company projected third-quarter fiscal 2026 revenue of about $54 billion, plus or minus 2%, topping the consensus estimate of $52.76 billion. That outlook does not factor in H20 sales to China, leaving the future of chip demand in the region uncertain.
In addition, Nvidia expanded its capital return program, announcing a fresh $60 billion share repurchase authorization.
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