Nvidia Earnings Report: AI Boom, Record Profits and Stock Market Reactions
Nvidia is one of the companies creating the most buzz in the technology world. Whenever its quarterly results come, Wall Street and investors keep an eye on it. This time the Nvidia earnings report was also similar in which the company showed better earnings and revenue than expectations, but the stock market reaction was slightly different. Let’s dive deep and understand why Nvidia’s results are so important and what is the reason for the stock falling.
Nvidia Earnings Report Shows Double Beat
According to the Nvidia earnings report, the company beat analyst expectations in Q2 on both earnings and revenue. Adjusted earnings per share was $1.05 while the estimate was $1.01. Revenue was recorded at $46.74 billion which was higher than the estimate of $46.06 billion. These numbers clearly show that the demand for Nvidia is still running at full speed amidst the boom of AI infrastructure.
The company has also given strong guidance in which the revenue expectation for the next quarter is up to $54 billion, which is higher than the analysts’ estimate of $53.1 billion. This is clearly a sign that the AI race has just begun and Nvidia is the biggest player in that race.
Data Center Growth and Challenges
The most important role in the Nvidia earnings report is played by its data center business. Data center revenue in this quarter was $41.1 billion, which is a 56% growth compared to last year. But the problem is that this number is slightly less than StreetAccount’s estimate of $41.34 billion, due to which investors expressed disappointment and the stock slipped in after-hours trading.
The company’s CFO Colette Kress said that an investment of $3 trillion to $4 trillion in AI infrastructure is expected by the end of the decade. Meaning the global buildout of AI has just begun and Nvidia is at the center of it.
H20 Chips and China Factor
An interesting twist in the Nvidia earnings report was that of H20 chips. The company did not sell any H20 chips to China in this quarter, but released $180 million worth of H20 inventory to a customer outside China. Nvidia’s revenue could be even higher if the geopolitical environment improves. The company also indicated that H20 revenue could range from $2 billion to $5 billion in the next quarters if approvals are received.
CEO Jensen Huang also indicated after his meeting with Trump that it expected to receive US licenses to resume H20 shipments to China. If that happens, Q2 revenue would be even more impressive.
Blackwell Chips Driving the Future
One of the most positive highlights of the Nvidia earnings report was the growth of Blackwell chip sales. The company reported that Blackwell sales grew 17% quarter-over-quarter. In May 2025, Nvidia confirmed that its new product line reached $27 billion in sales, representing 70% of its data center revenue.
CEO Huang called Blackwell “the AI platform the world has been waiting for” and described NVLink rack-scale computing as “revolutionary.” These things clearly show that Nvidia is not just a hardware company but has become the backbone of the AI revolution.
Gaming and Robotics Business
Despite the AI boom, Nvidia’s gaming division also remained strong. Gaming revenue reached $4.3 billion in this quarter, which is a 49% growth compared to last year. This is a reminder that the company is not ignoring its core gaming audience either.
The Robotics division is still small, but generated revenue of $586 million in this quarter, which is 69% annual growth. Nvidia has always considered robotics a long-term opportunity and this growth is a solid step in that direction.
Share Buyback and Market Reaction
Another big announcement came along with the Nvidia earnings report – the company’s board approved a share repurchase program worth $60 billion. Earlier the company had repurchased shares worth $9.7 billion in this quarter. This is clearly a positive news for shareholders.
But despite strong results, Nvidia stock fell 3.4% in after-hours trading to $175.40 a share. The reason was simple – data center revenue was falling slightly short of expectations and investors reacted immediately to that disappointment.
The Bigger Picture
If you look at the Nvidia earnings report as a whole, the picture is pretty clear. Revenue is up 56% year-over-year, net income jumped 59% to $26.42 billion, and demand is still extraordinary. Yes, there can be short-term market reactions but in the long-term story, there is no doubt that Nvidia is at the center of the AI race.
Tech giants like Meta, Alphabet, Microsoft and Amazon are already investing billions of dollars in AI and Nvidia is their preferred partner. The biggest winner in this race clearly appears to be Nvidia.
Conclusion
The Nvidia earnings report once again proves that the demand for AI has not yet reached its peak, but it is just beginning. The fall of the stock is just a short-term reaction, but the long-term growth trajectory of the company is still intact. Jensen Huang’s leadership and Nvidia’s GPUs have started a new technological era in which the very definition of computing is changing.
Disclaimer:
This article is for informational purposes only. The financial details and analysis given here are not any kind of investment advice. Consult your financial advisor before investing in the stock market.
Also Read
Nvidia CEO Jensen Huang’s Salary Review Strategy: Visionary Leader Giving Priority to Employees
