Nvidia reported strong earnings and revenue for the second quarter, beating estimates despite data center revenue coming up short of expectations. The company’s data center business saw 56% growth to $41.1 billion, accounting for 88% of total sales.
However, data center revenue fell short of analysts’ estimates for the second consecutive quarter. Nvidia also reported that it did not sell any H20 processors to China-based customers during the period, but benefited from the release of $180 million worth of inventory to a client outside of China.
Nvidia’s CEO Jensen Huang had previously signaled that the company expected to get U.S. licenses to ship the H20 chip to China after meeting with President Donald Trump. The processor, which was custom-built for sales to China, cost Nvidia $4.5 billion in writedowns.
Despite this, Nvidia remains optimistic about demand for artificial intelligence infrastructure, signaling growth above 50% for the next quarter. The company also reported a significant increase in net income, rising 59% to $26.42 billion.
Nvidia’s data center business is driven by its graphics processing units (GPUs) and complementary products for connecting and using them in large quantities. Revenue from this division rose 56% year-over-year to $41.1 billion, with $33.8 billion attributed to “compute” or GPU chips, which declined 1% due to reduced H20 sales.
The company’s gaming division reported strong growth, with $4.3 billion in sales up 49% from the previous year. Nvidia also saw significant growth in its robotics division, with $586 million in sales representing 69% annual growth.
Source: https://www.cnbc.com/2025/08/27/nvidia-nvda-earnings-report-q2-2026.html