Nvidia's AI Business to Soar Past $10 Trillion by 2030

Nvidia, a pioneer in graphics processing units for AI, reported record-setting revenue growth of 56% YoY to $46.7 billion in Q2 2026, driven by strong demand for AI chips. The company is guiding for Q3 revenue of $54 billion, and CEO Jensen Huang predicts $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade. Nvidia's market cap is currently around $4.4 trillion, but with its strong growth trajectory, it's predicted to reach $10 trillion by 2030.

NVIDIA (NASDAQ: NVDA) reported a record-setting revenue growth of 56% year-over-year (YoY) to $46.7 billion in the second quarter of fiscal 2026, driven by strong demand for AI chips. The company's data center revenue grew by 17% sequentially, contributing significantly to the overall revenue increase [1].

The company's CEO, Jensen Huang, highlighted the platform's success, stating, "Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap — production of Blackwell Ultra is ramping at full speed, and demand is extraordinary" [1].

NVIDIA's guidance for the third quarter of fiscal 2026 indicates a revenue expectation of $54.0 billion, with a margin of 73.3% (GAAP) and 73.5% (non-GAAP) [1]. CEO Jensen Huang also predicted that the AI infrastructure spend could reach $3 trillion to $4 trillion by the end of the decade [1].

The company's market cap is currently around $4.4 trillion, and with its strong growth trajectory, it is predicted to reach $10 trillion by 2030. NVIDIA's performance in the second quarter was bolstered by the release of $180 million of previously reserved H20 inventory, which had been held due to export restrictions from China [1].

The company's share repurchase authorization was recently increased by $60.0 billion, and it paid a quarterly cash dividend of $0.01 per share on October 2, 2025 [1].

Key Highlights

- Data Center Revenue: $41.1 billion, up 5% from the previous quarter and 56% from a year ago [1].
- Gaming Revenue: $4.3 billion, up 14% from the previous quarter and 49% from a year ago [1].
- Professional Visualization Revenue: $601 million, up 18% from the previous quarter and 32% from a year ago [1].
- Automotive and Robotics Revenue: $586 million, up 3% from the previous quarter and 69% from a year ago [1].

Financial Performance

- Gross Margin: 72.4% (GAAP) and 72.7% (non-GAAP) [1].
- Operating Expenses: $5,413 million (GAAP) and $3,795 million (non-GAAP) [1].
- Operating Income: $28,440 million (GAAP) and $30,165 million (non-GAAP) [1].
- Net Income: $26,422 million (GAAP) and $25,783 million (non-GAAP) [1].
- Diluted Earnings per Share: $1.08 (GAAP) and $1.05 (non-GAAP) [1].

Outlook

NVIDIA expects to exit the year with non-GAAP gross margins in the mid-70% range. The company continues to invest heavily in AI infrastructure and has partnerships with major technology companies and governments worldwide to build AI infrastructure [1].

Conclusion

NVIDIA's robust financial performance and strong revenue growth in Q2 2026 highlight the company's leadership in the AI chip market. With a promising outlook and significant market potential, NVIDIA is well-positioned to continue its growth trajectory.

References

[1] https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-second-quarter-fiscal-2026