Nvidia's Q2 Revenue Surges 56% to 467 Billion, Driven by AI Data Center Growth

Nvidia, the world's highest-valued company by market capitalization, reported a significant increase in revenue for the quarter, reaching 467 billion dollars, a 56% year-over-year growth. This growth was primarily driven by the company's data center business, which is heavily influenced by artificial intelligence (AI). The data center business also saw a 56% year-over-year increase in revenue.

Nvidia's net profit for the second quarter was 264 billion dollars, marking a 59% increase from the same period last year. The data center business contributed 411 billion dollars to the total revenue, indicating a sustained high demand for advanced graphics processing units (GPUs) from AI enterprises. Notably, Nvidia's latest generation chip, "Blackwell," contributed 270 billion dollars to this revenue.

The CEO highlighted that "Blackwell is the globally anticipated AI platform," and that the AI race is in full swing, with Blackwell being the core platform for this competition. Nvidia also played a crucial role in the recent release of the open-source model gpt-oss by OpenAI, where a single Blackwell GB200 NVL72 rack system could process 1.5 million tokens per second.

The financial report also revealed ongoing challenges for Nvidia in the China mainland market. During the past quarter, no H20 chips were sold to China mainland customers, although 650 million dollars worth of H20 chips were sold to another customer. Historically, the U.S. has restricted the sale of advanced GPUs, but during the Trump administration, Nvidia was allowed to sell chips by paying a 15% export tax to the U.S. Treasury.

Looking ahead, Nvidia expects third-quarter revenue to reach 540 billion dollars, with a potential variance of 2% either way. This forecast does not include any sales of H20 chips to the China mainland market. The company's revenue projection for the third quarter, while in line with market expectations, fell short of some analysts' predictions, which had anticipated figures exceeding 600 billion dollars. This conservative outlook has raised concerns about a potential slowdown in AI-related investments, which could impact Nvidia's future performance.

Despite recent relaxations in export restrictions by the U.S. government, these changes have yet to translate into a significant revenue boost for Nvidia. The company continues to face intense competition, particularly in the data center processor market, where regulatory changes have had a notable impact on its operations. The U.S. government's decision to allow the export of certain products to the China mainland, albeit with a 15% revenue share, has added another layer of complexity to Nvidia's market strategy.