Nvidia's earnings surpassed expectations once more yesterday evening, though the AI chipmaker's shares declined in after-hours trading amid persistent concerns regarding China.
The Silicon Valley-based company, now valued at over $4tn (£3.1tn), posted fiscal second-quarter revenue of $46.7bn, representing a 56% year-on-year increase, alongside adjusted earnings per share of $1.05.
Both metrics exceeded Wall Street projections. Quarterly profit soared 59% to $26.4bn, as reported by .
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Revenue from Nvidia's data centre division, the powerhouse behind the AI revolution, totalled $41.1bn, climbing more than 50% compared to the previous year but falling marginally short of analyst predictions of $41.3bn. Cloud service providers represented approximately half of this figure, with Nvidia's next-generation Blackwell processors fuelling a 17% quarterly increase.
"Another impressive performance by Nvidia, with signs that interest in their state-of-the-art products, such as Blackwell, remains high", said Alvin Nguyen, senior analyst at Forrester. "The company is making strategic moves across areas under their control, including innovation in robotics and promoting use cases like reasoning AI".
Gaming turnover reached $4.3bn, marking a 49% surge, whilst robotics sales climbed 69% to $586m. Nvidia also announced an additional $60bn share repurchase programme, having already allocated $9.7bn towards buying back its stock this quarter. However, the China issue took centre stage.
Nvidia recorded zero H20 chip sales into the nation during this timeframe following fresh US export restrictions, though it successfully delivered $650m worth of the semiconductors to a non-Chinese buyer. Significantly, its Q3 projections of $52.9bn–$55.1bn omitted China entirely, falling short of more optimistic predictions that had anticipated renewed sales activity.
Several analysts had estimated revenues approaching $60bn. Stock prices dropped over 3% during after-hours trading on Wednesday, despite climbing 35% year-to-date.
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Markets also experienced broader uncertainty, with US equity futures declining following these figures, indicating that investor anxiety surrounding AI valuations persists.
Chief executive Jensen Huang cautioned: "The platform that wins China is positioned to lead globally today. However, the $50bn China market is effectively closed to us."
Despite uncertainty surrounding its China sales, Mr Huang described demand for its Blackwell platform as, "extraordinary," with production "ramping at full speed.
"The AI race is on," he added. "Blackwell is the platform at its centre."