Nvidia delivered stronger-than-expected results for the latest quarter, showing that demand for artificial intelligence (AI) infrastructure remains robust. The company’s performance signals continued growth in the AI-driven data center market.
Earnings and Revenue Highlights
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Earnings per share (EPS): $1.05 adjusted vs. $1.01 estimated
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Revenue: $46.74 billion vs. $46.06 billion estimated
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Revenue guidance: $54 billion ±2% for the upcoming quarter
While shares initially slipped in after-hours trading due to data center revenue slightly missing estimates, losses were later pared. Overall, Nvidia stock is up 35% in 2025, following a near-tripling in 2024.
AI Infrastructure Drives Growth
Nvidia’s data center business remains the key growth engine. CFO Colette Kress projected that AI infrastructure spending could reach $3–4 trillion by 2030.
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Total company revenue rose 56% year-over-year to $46.74 billion.
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Data center revenue grew 56% to $41.1 billion, slightly below analyst expectations.
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Of that, $33.8 billion came from GPU “compute” chips, and $7.3 billion from networking components, nearly double the prior year.
The quarter marked Nvidia’s slowest growth in nine straight quarters, yet AI demand continues to sustain high revenue levels.
H20 Chip and China Market Update
Nvidia confirmed that no H20 chips were sold to China during the quarter. However, the company released $180 million worth of H20 inventory to customers outside China.
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CEO Jensen Huang met with President Trump, signaling possible future U.S. licenses for H20 sales to China.
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Potential H20 revenue for the quarter could range between $2–5 billion if geopolitical conditions allow.
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The H20 chip previously cost Nvidia $4.5 billion in writedowns but could have added $8 billion in second-quarter sales.
Gaming and Robotics Divisions
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Gaming revenue: $4.3 billion, up 49% year-over-year
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GPUs for gaming now also support OpenAI models on personal computers
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Robotics division: $586 million in sales, growing 69% annually
While AI dominates, gaming remains a significant revenue contributor, and robotics is a fast-growing segment.
Share Repurchase Program
Nvidia’s board approved an additional $60 billion in stock buybacks, with $9.7 billion repurchased during the quarter.
Blackwell Chip Sales
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Blackwell chips sales grew 17% from Q1
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New product lines contributed $27 billion in sales, about 70% of data center revenue
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Large cloud providers make up roughly 50% of Nvidia’s data center business
These results underscore Nvidia’s central role in powering AI models for companies like Meta, Alphabet, Microsoft, and Amazon, all of which continue to invest heavily in infrastructure.
