nvidia's q2 revenue jumps, blackwell data center leads the charge
Santa Clara, Thursday, 28 August 2025.
Nvidia’s Q2 fiscal year 2026 results reveal a significant 56% surge in revenue, reaching $46.7 billion. This growth is attributed to the Blackwell Data Center, which saw a 17% sequential increase. The company is optimistic. Nvidia’s board authorized an additional $60 billion for share repurchases, signaling confidence in its financial position. Despite overall positive results, challenges remain. A $4.5 billion write-down from excess H20 graphics processors for the Chinese market impacted profit margins.
Financial highlights
Nvidia’s Q2 2026 earnings showcased GAAP earnings per diluted share of $1.08 and non-GAAP earnings per diluted share of $1.05 [1]. The company’s GAAP gross margin was 72.4%, with a non-GAAP gross margin of 72.7% [1]. During the first half of fiscal year 2026, Nvidia returned $24.3 billion to shareholders through share repurchases and cash dividends [1]. The next quarterly cash dividend of $0.01 per share is scheduled for October 2, 2025, for shareholders of record on September 11, 2025 [1].
blackwell’s impact and market dominance
CEO Jensen Huang emphasized Blackwell’s significance, stating it is the AI platform the world has been waiting for, delivering an exceptional generational leap [1]. He noted that production of Blackwell Ultra is ramping up at full speed, and demand is extraordinary [1]. Nvidia’s data center revenue reached $41.1 billion, marking a 5% increase from the previous quarter and a 56% increase year-over-year, further solidifying its market leadership [2].
china sales uncertainty
Nvidia’s stock experienced a slight dip of 0.8% after the company excluded potential China sales from its quarterly forecast [8]. CFO Colette Kress mentioned the company is awaiting formal regulation on a 15% remittance from the White House for chips sold to China [7]. Analyst Thomas Monteiro suggests that Nvidia cannot sustain its valuation growth without the anticipated H20 sales in China [7]. Despite these challenges, if restrictions ease, the CFO estimates $2 to $5 billion in H20 sales could materialize in the third quarter [7].
broader market trends and nvidia’s position
The S&P 500 and Dow Jones Industrial Average achieved record high closes, reflecting the strength of AI-related investments [8]. Ross Mayfield, investment strategy analyst at Baird, noted that AI remains a primary structural driver in the market [8]. Nvidia’s Q2 revenue surged 56%, reinforcing the view that spending on AI infrastructure remains strong [8]. Other tech companies like Alphabet, Amazon, and Broadcom also saw gains, indicating a positive trend in the tech sector [8].
stock performance and future outlook
Nvidia’s stock had risen 35% this year through Wednesday, August 27, 2025 [7]. The company’s automotive revenue also saw substantial growth, reaching $586 million, a 69% year-over-year increase [7]. Looking ahead, Nvidia anticipates significant AI infrastructure spending, with CFO Colette Kress projecting $3 to $4 trillion by 2030 [7]. Nvidia is also developing a more advanced chip than the H20 for the Chinese market, indicating a continued commitment to navigating geopolitical challenges [7].