Artificial intelligence giant Nvidia Inc. (NVDA) continued its strong performance on Wednesday, reporting second-quarter profit and revenue that beat expectations.
Strong data center earnings boosted the company's top line, but gross margins declined from the first quarter. NVIDIA issued third-quarter earnings guidance that beat consensus and announced an additional $50 billion in share repurchase authorization. Despite the strong results, the company's shares fell 3.6% in after-hours trading.
Nvidia's key second-quarter numbers: The Santa Clara, California-based chipmaker reported that earnings and sales more than doubled year-over-year and beat last quarter's figures.
Here are some key figures comparing with estimates and previous indicators:
Q2'25 ActualQ2'25 Consensus*Q2'25 GuidanceYoY ChangeQoQ ChangeRevenues$30.04B$28.68B$28B +/- 2%+122%+15%Non-GAAP EPS68 cents64 centsN/A+152%+11%Gross Margin (Non-GAAP)75.7%N/A75.5% +/- 50 bps+4.5 points-3.2 points*Based on Benzinga Pro data
“NVIDIA delivered record revenue at a time when data centers around the world are sprinting to modernize their entire computing stack with accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia.
“Demand for hoppers remains strong and expectations for Blackwell are incredibly high,” he added.
Nvidia's CEO also said that Blackwell samples are being shipped to partners and customers.
“Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software are two new product categories that have achieved significant scale, demonstrating NVIDIA's full-stack, data center-scale platform,” he said.
The sequential decline in gross profit was due to inventory provisions for lower-yielding Blackwell materials and an increased mix of new products in the data center business, which may be related to the H20 chips developed specifically for China.
See also: How to buy Nvidia (NVDA) stock
NVIDIA Shareholder Returns: NVIDIA's board of directors authorized an additional $50 billion in share repurchases with no deadline. The company announced that it will pay its next quarterly cash dividend of 1 cent per share on October 3 to all stockholders of record as of September 12.
Nvidia's third-quarter segment performance: The data center business reported another record quarter of revenue, more than doubling year-over-year, driven by strong demand for Hopper GPUs for training and inference of large-scale language models. The sequential growth was enabled by strong demand from consumer internet and enterprise companies. Cloud service providers accounted for 45% of data center revenue, while enterprise and internet companies accounted for more than 50%.
Other business segments also experienced year-over-year and sequential revenue increases.
Revenue % of Total Revenue*YoY GrowthQoQ GrowthData Center$26.27B 87.45% 154.55% 16.45%Gaming and AI PC$2.88B 959% 1566% 8.68%Professional Visualization$454M 150% 1842% 465%Automotive$346M 117% 40% 6.06%Data provided by Nvidia.
*Percentages may not total 100 as OEM and other revenue is excluded from comparison.
Nvidia's third-quarter outlook: Nvidia's earnings are seen as a barometer for spending on artificial intelligence. The chipmaker said it expects third-quarter revenue of $32.5 billion, plus or minus 2%. The consensus estimates are for earnings of 71 cents a share and revenue of $31.69 billion.
The company expects third-quarter non-GAAP gross margins of 75 percent, plus or minus 50 basis points. For the full year, non-GAAP gross margins are expected to be in the mid-70 percent range. Nvidia's full-year earnings and revenue are estimated at $2.75 per share and $121.63 billion, respectively.
Nvidia earnings call focus: Rumors of delays to Blackwell 200 AI accelerator are causing anxiety among traders. Fund manager Louis Navellier said he expects investors will focus on management's comments about the chip's timeline rather than quarterly revenue or profit.
TFI analyst Ming-Chi Kuo said he would be watching to see if the retape-out of Blackwell 200 impacts earnings and margins in the near term. Rumors of the AI chip delay were due to a design flaw. Kuo said if the company can provide details that ease investor concerns about the GB200 shipping timeline, it would be positive for Nvidia stock and its supply chain over the next three months.
The earnings conference call is scheduled for 5:00 pm EDT.
Nvidia Stock: The company's stock has been performing well, up about 154% year to date. This compares to a 17.24% increase for the S&P 500 and a 15% increase for the Nasdaq 100. The iShares Semiconductor ETF SOX is up about 18% over the same period.
Nvidia closed Wednesday trading at $125.61, down 2.10%, according to data from Benzinga Pro.
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Nvidia CEO Jensen Huang shows off the GB200 Grace Blackwell superchip. Photo courtesy of Nvidia.
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