Topline
The world’s most valuable company reported second-quarter earnings Wednesday that beat Wall Street’s expectations yet again, with investors seeking clues into how Nvidia fared with challenges in the China market.
Nvidia published its Q2 earnings Wednesday afternoon. (Photo by I-Hwa Cheng / AFP)
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Key Facts
Nvidia reported $46.7 billion in second-quarter revenue, surpassing the chip designer’s sales record of $44.1 billion in the previous quarter and besting economist forecasts of $46.05 billion, according to estimates compiled by FactSet.
A bulk of Nvidia’s top-line came from nearly $41.1 billion in data center revenue, which Morgan Stanley analyst Joseph Moore wrote Monday would drive Nvidia’s business over the next year, behind predictions of $41.3 billion.
The AI firm brought in adjusted earnings per share of $1.05 and $25.78 billion net income, besting Wall Street’s projections of $1.01 EPS and $24.7 billion, respectively.
Nvidia’s top- and bottom-line figures account for annual increases of 6% and 42%, respectively trumping the year-earlier totals of $30 billion and $0.67 EPS.
Nvda Falls On Q2 Earnings Report
Nvidia shares briefly fell 4% in after-hours trading following the release of the company’s earnings report. The stock hit an intraday high of $184.12 earlier this month, while Nvidia shares traded around $181 before market close Wednesday.
What Investors Are Looking For In Nvidia’s Earnings Call
Nvidia will host a call with investors at 5 p.m. EDT. Some analysts are looking for answers from CEO Jensen Huang about the Chinese government pressuring domestic companies not to buy the company’s H20 AI processors over national security concerns, leading Nvidia reportedly to halt production. Morgan Stanley believes this “remains an important issue to resolve long term,” though it would likely be resolved “with both countries incentivized to enable access to U.S. hardware,” Moore wrote. Kevin Cassidy, an analyst for Rosenblatt Securities, wrote his firm believes Nvidia will introduce a “China-specific” alternative to the AI chip, which could “command a higher price point, better margins and offer a more competitive solution.”
Crucial Quote
WedBush Securities, in a note Wednesday led by Seth Basham, said Nvidia is one of 30 companies that will “define the future of the AI revolution over the coming years.” The brokerage dispelled fears Nvidia and other AI firms would be the victims of a broader “stock market bubble,” adding, “The potential for AI to drive productivity and economic growth dwarfs past technologies.”
Key Background
As the last of the “Magnificent Seven” companies to report Q2 earnings this year, Nvidia closes out a three-month period of growing competition, specifically in China. Chinese semiconductor firm Cambricon reported a record $402 million profit over the first half of 2025, though Wall Street remains optimistic for Nvidia’s growth prospects while backed by demand for AI technology and data centers. Analysts for Evercore ISI wrote earlier this month they believed rising cloud demand at companies like Amazon indicates AI has “hit a tipping point at enterprises,” as Nvidia’s chips are the “solution of choice” for training AI language models. The brokerage noted Nvidia remains its “top pick” in the near term and lifted its price target for Nvidia’s stock to $214 from $190.
Further Reading
S&P 500 And Nasdaq Set New Record Highs—Here’s Why Wall Street Expects Rally Could Climb Further (Forbes)
Source: https://www.forbes.com/sites/tylerroush/2025/08/27/nvidia-earnings-beats-wall-street-expectations-and-sets-another-quarterly-sales-record/
