Nvidia(US:NVDA) Zhi Tong Cai Jing·2025-08-27 22:32Core Insights - Nvidia reported Q2 FY2026 earnings that exceeded market expectations for both revenue and earnings per share, but the stock fell 5% in after-hours trading due to investor expectations being higher [1][2] - The company's stock has risen approximately 35% year-to-date, significantly outperforming the Nasdaq index's 12% increase during the same period [1] Revenue and Earnings - Q2 revenue reached $46.7 billion, surpassing the market expectation of $46.05 billion, and representing a year-over-year increase of 56%, although it marked the slowest growth since the generative AI boom began in 2023 [1][2] - Adjusted earnings per share (EPS) were $1.05, exceeding the market expectation of $1.01, with net profit rising to $26.42 billion, a 59% increase from $16.6 billion in the same quarter last year [2] Data Center Business - The data center segment remains Nvidia's growth engine, generating $41.1 billion in revenue, a year-over-year increase of 56%, but slightly below analyst estimates of $41.3 billion [2] - GPU computing chip revenue was $33.8 billion, down 1% quarter-over-quarter, primarily due to a lack of H20 chip shipments to China, resulting in a $4 billion sales reduction [2] - Networking chip revenue nearly doubled year-over-year to $7.3 billion, with the latest Blackwell chip sales increasing 17% quarter-over-quarter, accounting for 70% of data center revenue [2] Future Guidance - Nvidia expects next quarter's revenue midpoint to be $54 billion (±2%), higher than the market expectation of $53.4 billion [2] - The CFO indicated that global AI infrastructure spending is projected to reach $3 to $4 trillion by the end of the century, suggesting that the AI wave is still in its early stages [2] Stock Buyback Program - The board approved a new $60 billion stock repurchase program with no expiration date, and the company repurchased $9.7 billion worth of stock in Q2 [3] - As of the end of the quarter, $14.7 billion remains under the previous authorization [3]