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Nvidia's Resilience Despite Slowing Growth: Market Remains Optimistic
ByAinvest
Saturday, Aug 30, 2025 12:15 am ET1min read
Nvidia's latest quarter showed slowing growth, but shares fell less than 1% as investors remain optimistic. The stock has soared 1,000% since ChatGPT's launch, with forward earnings estimates rising 1,136%. The company's 9 consecutive quarters of revenue growth above 50% have driven the stock. Despite some concerns about profit margins, investors seem unfazed, considering "good, not amazing" still counts as good enough.
NVIDIA (NASDAQ: NVDA) reported mixed results for the second quarter ended July 27, 2025. The company's revenue for the quarter reached $46.7 billion, up 6% sequentially and 56% year-over-year [1]. However, the stock fell less than 1% as investors remained optimistic about the company's future prospects.The company's Blackwell Data Center revenue grew by 17% sequentially, but there were no H20 sales to China-based customers in the second quarter. NVIDIA benefited from a $180 million release of previously reserved H20 inventory, from approximately $650 million in unrestricted H20 sales to a customer outside of China. GAAP and non-GAAP gross margins were 72.4% and 72.7%, respectively, while GAAP and non-GAAP earnings per diluted share were $1.08 and $1.05, respectively [1].
Despite some concerns about profit margins, investors seem unfazed, considering "good, not amazing" still counts as good enough. The stock has soared 1,000% since ChatGPT's launch, with forward earnings estimates rising 1,136%. NVIDIA's 9 consecutive quarters of revenue growth above 50% have driven the stock [1].
NVIDIA's outlook for the third quarter of fiscal 2026 is as follows: Revenue is expected to be $54.0 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 73.3% and 73.5%, respectively, plus or minus 50 basis points. The company continues to expect to exit the year with non-GAAP gross margins in the mid-70% range [1].
References:
[1] https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-second-quarter-fiscal-2026
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