Nvidia(US:NVDA) Tai Mei Ti A P P·2025-08-28 03:01Core Insights - NVIDIA reported a revenue of $46.743 billion for Q2 2026, with a year-over-year growth of 56%, slightly exceeding analyst expectations of $46.23 billion [2] - The company's net profit for the same quarter was $26.422 billion, marking a 57% increase year-over-year, while the gross margin decreased to 72.4% from 75.1% a year ago [2][10] - The revenue from NVIDIA's data center segment reached $41.1 billion, reflecting a 56% increase year-over-year, but the growth rate has slowed compared to previous quarters [2][10] Financial Performance - NVIDIA's Q2 revenue was $46.743 billion, a 6% increase quarter-over-quarter and a 56% increase year-over-year [2] - The net profit for Q2 was $26.422 billion, with diluted earnings per share at $1.08, up 61% from the previous year [2] - The gross margin for Q2 was 72.4%, down from 75.1% year-over-year [2] Data Center Segment - Data center revenue for Q2 was $41.1 billion, with a 5% increase quarter-over-quarter and a 56% increase year-over-year [2][10] - The revenue from NVIDIA's Blackwell data center architecture grew by 17% quarter-over-quarter [2][10] - The data center computing revenue increased by 50% year-over-year to $33.8 billion, but saw a 1% decline quarter-over-quarter due to a $4 billion drop in H20 sales [11] Market Outlook - NVIDIA's guidance for Q3 revenue is set at $54 billion, which is above analyst expectations but below some optimistic forecasts of $60 billion [5] - The company has not included any assumptions regarding H20 chip sales to China in its guidance, reflecting ongoing geopolitical challenges [5][18] - Despite a 24.49% decline in revenue from the China region year-over-year, NVIDIA's CEO highlighted the potential for $50 billion in opportunities from the Chinese market [7][20] Product Segments - The gaming and AI PC segment generated $4.3 billion in revenue, a 14% increase quarter-over-quarter and a 49% increase year-over-year [13] - The professional visualization segment saw revenue of $601 million, up 18% quarter-over-quarter and 32% year-over-year [13] - The automotive and robotics segment reported $586 million in revenue, a 3% increase quarter-over-quarter and a 69% increase year-over-year [14] Geopolitical Challenges - NVIDIA's sales to China have been impacted by U.S. government restrictions on AI chip exports, with Q2 revenue from China dropping to $2.769 billion [18][22] - The company has not shipped H20 chips to Chinese customers, despite some customers receiving export licenses [18][19] - The Chinese market is seen as crucial for NVIDIA's growth, with significant competition emerging from local chip manufacturers [24][27] Strategic Initiatives - NVIDIA plans to increase stock buybacks, having returned $24.3 billion to shareholders in the first half of the fiscal year [27] - The company is focused on expanding its AI infrastructure opportunities, with a projected market size of $3-4 trillion over the next five years [15][28] - NVIDIA's CEO emphasized the importance of maintaining a competitive edge in the AI market, particularly in light of advancements in open-source models in China [21][22]