Article
Nvidia Posts $46.7B Q2 Revenue, Surges Ahead in AI Race Despite China Setbacks and Slowing Growth
Summary
Nvidia reports $46.7B Q2 revenue, up 56% YoY, driven by AI chip demand. Blackwell sales soar, but China bans and slowing growth raise investor concerns.
Nvidia has once more exceeded expectations, with fiscal second-quarter 2026 revenue of a staggering $46.7 billion, representing a 56% year-over-year rise. The firm also reported a 59% rise in net income to $26.4 billion and posted adjusted earnings per share of $1.05, higher than estimates.
The hyper-growth is kept alive by Nvidia's data center business, which has risen to 88% of all revenues. Sales of its Blackwell chips, introduced earlier in the year, rose 17% from the previous quarter and have already amassed $27 billion in revenue. Even as the company posted a strong showing, however, Nvidia's shares declined 3.3% in after-hours trading, reflecting investor anxiety regarding weakening growth pace and missing data center revenue projections.
China remains the problematic issue. Nvidia reported zero sales of its H20 processors to Chinese customers in the period, citing ongoing export restrictions. While the U.S. government has just overridden its previous stance and approved conditional sales of H20s, China's government attempts to develop domestic chip alternatives cast uncertainty over future demand.
Forward-looking, Nvidia is guiding Q3 revenue of approximately $54 billion, which is more positivity. Nvidia also authorized a massive $60 billion stock repurchase program, which shows confidence in its direction ahead.
As AI infrastructure investment is set to reach $3–4 trillion globally by 2030, Nvidia's dominance in the GPU market makes it a cornerstone of the AI revolution. Geopolitics and supply chain issues can, however, shape the next chapter in its growth story.