Nvidia Q2 results beat, but data center revenue just light as China weighs

Investing.com -- Nvidia reported Wednesday better-than-expected second-quarter results, but data center revenue fell just short of estimates as U.S. restrictions on H20 chip sales to China weighed.

NVIDIA Corporation (NASDAQ:NVDA) shares fell about 2% in recent aftermarket hours following the report.

For the three months ended Jul. 31, the company reported first-quarter adjusted earnings per share of $1.04 on revenue of $46.7 billion. Analysts polled by Investing.com anticipated per-share income of $1.01 and revenue of $46.1B.

Nvidia’s data center unit, which makes up the bulk of revenue and is in high demand to power AI apps, saw revenue jump 56% to $41.1B, just missing estimates for $41.34B as the H20 chip ban to China weighed.

"There were no H20 sales to China-based customers in the second quarter," the company said.

NVIDIA’s Blackwell Data Center, which succeeds the previous Hopper platform and is poised to lead growth, saw revenue grew 17% sequentially.

The chipmaker’s gaming unit saw revenue jump 49% to $4.3B.

Looking ahead, the company forecast fiscal 2026 third-quarter revenue of $54 billion, plus or minus 2%, beating estimates of $52.76B. The guidance excludes H20 chip sales to China, the company said, adding uncertainty on the chipsales outlook to China.

The company also unveiled an additional $60B to its share buyback program.

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