Nvidia, a leading computer-chip designer based in Santa Clara, California, reported a robust $46.7 billion in revenue for the second quarter of 2025, marking a 56% increase from the same period in 2024. This surge was primarily fueled by strong demand for Nvidia’s sophisticated AI chips, particularly from major tech firms like Meta and OpenAI, which are aggressively expanding their AI capabilities. The company’s data center revenue alone grew by 56% to $41.1 billion, though it slightly missed analysts’ expectations. Nvidia forecasted $54 billion in revenue for the current quarter, surpassing Wall Street projections, signaling continued confidence in its market dominance.
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NVIDIA Second Quarter Fiscal Results 2026
In July 2025, Nvidia became the world’s first $4 trillion company, underscoring its critical role in the AI-driven tech landscape. CEO Jensen Huang emphasized the intensifying “AI race,” noting that annual spending by four major tech firms on AI infrastructure had doubled to $600 billion, with Nvidia’s chips forming a cornerstone of this expansion. Huang suggested that AI advancements could accelerate global GDP growth, with Nvidia playing a significant part in building AI infrastructure.
| Metric | Value/Details 📊 |
|---|---|
| Revenue (Q2 2025) | $46.7 billion (£34.6 billion) |
| Revenue Growth (Q2 2025 vs. Q2 2024) | 56% increase |
| Data Center Revenue (Q2 2025) | $41.1 billion (56% growth, slightly below analysts’ expectations) |
| Forecasted Revenue (Current Quarter) | $54 billion (exceeds Wall Street expectations) |
| Market Valuation (July 2025) | $4 trillion (first company to reach this milestone) |
| Big Tech AI Spending (Annual) | $600 billion (doubled, as reported by Jensen Huang) |
| US Revenue Share from H20 Sales | 15% of revenue from licensed H20 chip sales to China |
| H20 Chip Shipments (as of report) | None shipped, despite some China-based customers receiving licenses |
| Geopolitical Issue | US-China trade war; US reviewing licenses for H20 chip sales; ban reversal lobbied |
| Competitive Threat | Growing domestic chipmaking in China due to US export restrictions |
US-China trade disputes
However, Nvidia’s success is tempered by geopolitical tensions, particularly US-China trade disputes. The company has been caught in a trade war, with the Trump administration imposing policies to maintain US leadership in AI. A previous ban on Nvidia’s high-end AI chip sales to China was reversed after lobbying by Huang, allowing sales of Nvidia’s H20 chips, designed specifically for the Chinese market. However, the US government is now reviewing licenses for these sales, and Nvidia has not yet shipped any H20 chips despite some Chinese customers receiving approvals.
The US expects to receive 15% of the revenue from these licensed sales. Nvidia is also seeking approval to sell its advanced Blackwell chips in China, the largest chip market, but faces growing competition from Chinese domestic chipmakers, spurred by US export restrictions. Analyst Jacob Bourne noted that these restrictions are fostering China’s chipmaking industry, raising questions about Nvidia’s long-term dominance. The company is exploring robotics to maintain its position as a leader in the AI economy, even as its shares dipped in after-hours trading due to these uncertainties.
Q2 Fiscal 2026 Summary
| GAAP | |||||
| ($ in millions, except earnings per share) | Q2 FY26 | Q1 FY26 | Q2 FY25 | Q/Q | Y/Y |
| Revenue | $46,743 | $44,062 | $30,040 | 6% | 56% |
| Gross margin | 72.4% | 60.5% | 75.1% | 11.9 pts | (2.7) pts |
| Operating expenses | $5,413 | $5,030 | $3,932 | 8% | 38% |
| Operating income | $28,440 | $21,638 | $18,642 | 31% | 53% |
| Net income | $26,422 | $18,775 | $16,599 | 41% | 59% |
| Diluted earnings per share | $1.08 | $0.76 | $0.67 | 42% | 61% |
| Non-GAAP | |||||
| ($ in millions, except earnings per share) | Q2 FY26 | Q1 FY26 | Q2 FY25 | Q/Q | Y/Y |
| Revenue | $46,743 | $44,062 | $30,040 | 6% | 56% |
| Gross margin | 72.7% | 61.0% | 75.7% | 11.7 pts | (3.0) pts |
| Gross margin excluding H20 related charges/releases, net | 72.3% | 71.3% | 1.0 pt | ||
| Operating expenses | $3,795 | $3,583 | $2,792 | 6% | 36% |
| Operating income | $30,165 | $23,275 | $19,937 | 30% | 51% |
| Net income | $25,783 | $19,894 | $16,952 | 30% | 52% |
| Diluted earnings per share | $1.05 | $0.81 | $0.68 | 30% | 54% |
| Diluted earnings per share excluding H20 related charges/releases, net and related tax impact | $1.04 | $0.96 | 8% | ||
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