Nvidia Falls Despite Earnings, Tech Sector Rises Amid Mixed Earnings Results
ByAinvest
Friday, Aug 29, 2025 10:11 pm ET1min read
NVDA--
Nvidia Corp. (NASDAQ: NVDA) reported its second-quarter fiscal 2026 earnings on July 27, 2025. The company's revenue for the quarter was $46.7 billion, up 6% from the previous quarter and up 56% from a year ago. This growth was driven by a 17% sequential increase in Blackwell Data Center revenue. Notably, there were no H20 sales to China-based customers in the second quarter [2].
Despite the strong revenue growth, the stock did not react positively to the earnings report. The company's stock declined by 0.5% on the day of the announcement. This could be attributed to several factors, including the company's continued struggles with U.S.-China trade restrictions and the impact of these restrictions on its H20 chip sales. Additionally, the absence of H20 sales to China-based customers may have dampened investor expectations [2].
The company's gross margins remained robust, with GAAP and non-GAAP gross margins of 72.4% and 72.7%, respectively. Excluding the $180 million release of previously reserved H20 inventory, non-GAAP gross margin for the quarter would have been 72.3%. The company's earnings per diluted share were $1.08 and $1.05, respectively, for GAAP and non-GAAP [2].
Nvidia's outlook for the third quarter of fiscal 2026 is also worth noting. The company expects revenue of $54.0 billion, plus or minus 2%, with GAAP and non-GAAP gross margins of 73.3% and 73.5%, respectively. The company has not assumed any H20 shipments to China in the outlook [2].
In conclusion, while Nvidia's second-quarter earnings report showed strong revenue growth, the stock did not react positively to the news. The company's continued struggles with U.S.-China trade restrictions and the absence of H20 sales to China-based customers may have contributed to the stock's decline. Investors should continue to monitor Nvidia's performance and the broader market conditions to assess the potential impact on the company's stock price.
References:
[1] https://247wallst.com/investing/2025/08/27/nvidia-nasdaq-nvda-stock-price-prediction-for-2025-where-will-it-be-in-1-year/
[2] https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-second-quarter-fiscal-2026
Stocks rose Thursday, despite Nvidia's earnings failing to boost its stock. Nvidia declined 0.5%, while Snowflake, Pure Storage, CrowdStrike, Hormel Foods, Cooper, and HP made notable moves. Nvidia is the world's most valuable company.
Stocks rose Thursday, despite Nvidia's earnings failing to boost its stock. Nvidia declined 0.5%, while Snowflake, Pure Storage, CrowdStrike, Hormel Foods, Cooper, and HP made notable moves. Nvidia is the world's most valuable company.Nvidia Corp. (NASDAQ: NVDA) reported its second-quarter fiscal 2026 earnings on July 27, 2025. The company's revenue for the quarter was $46.7 billion, up 6% from the previous quarter and up 56% from a year ago. This growth was driven by a 17% sequential increase in Blackwell Data Center revenue. Notably, there were no H20 sales to China-based customers in the second quarter [2].
Despite the strong revenue growth, the stock did not react positively to the earnings report. The company's stock declined by 0.5% on the day of the announcement. This could be attributed to several factors, including the company's continued struggles with U.S.-China trade restrictions and the impact of these restrictions on its H20 chip sales. Additionally, the absence of H20 sales to China-based customers may have dampened investor expectations [2].
The company's gross margins remained robust, with GAAP and non-GAAP gross margins of 72.4% and 72.7%, respectively. Excluding the $180 million release of previously reserved H20 inventory, non-GAAP gross margin for the quarter would have been 72.3%. The company's earnings per diluted share were $1.08 and $1.05, respectively, for GAAP and non-GAAP [2].
Nvidia's outlook for the third quarter of fiscal 2026 is also worth noting. The company expects revenue of $54.0 billion, plus or minus 2%, with GAAP and non-GAAP gross margins of 73.3% and 73.5%, respectively. The company has not assumed any H20 shipments to China in the outlook [2].
In conclusion, while Nvidia's second-quarter earnings report showed strong revenue growth, the stock did not react positively to the news. The company's continued struggles with U.S.-China trade restrictions and the absence of H20 sales to China-based customers may have contributed to the stock's decline. Investors should continue to monitor Nvidia's performance and the broader market conditions to assess the potential impact on the company's stock price.
References:
[1] https://247wallst.com/investing/2025/08/27/nvidia-nasdaq-nvda-stock-price-prediction-for-2025-where-will-it-be-in-1-year/
[2] https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-second-quarter-fiscal-2026
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