Nvidia(US:NVDA) Huan Qiu Wang Zi Xun·2025-08-28 03:13Core Viewpoint - Nvidia reported strong financial results for Q2 of fiscal year 2026, driven primarily by its data center business, which continues to be a key growth area for the company [1][2]. Financial Performance - Nvidia's revenue for the second fiscal quarter reached $46.7 billion, representing a year-over-year increase of 56% and a quarter-over-quarter increase of 6% [1]. - The data center segment generated $41.1 billion in revenue, accounting for over 80% of total revenue, with a quarter-over-quarter growth of 5% [1]. - The gross margin under GAAP was 72.4%, while the non-GAAP gross margin was 72.7%, indicating strong profitability [2]. - Diluted earnings per share were reported at $1.05, with adjusted earnings per share at $1.04 [2]. Shareholder Returns - Nvidia returned a total of $24.3 billion to shareholders in the first half of fiscal year 2026 through stock buybacks and cash dividends [2]. - The company has an authorized stock buyback balance of $14.7 billion and recently approved an additional $60 billion buyback program with no expiration, reflecting confidence in long-term growth [2]. Market Reaction - Following the earnings report, Nvidia's stock experienced volatility, initially dropping by 4% before stabilizing to a decline of 1.83%, and later widening to a 3.5% drop [3]. - Investor concerns were raised regarding the high procurement costs of GPUs for AI software companies, potentially limiting future demand growth [3]. Product Development - Nvidia announced the upcoming launch of the new generation Rubin GPU, which is expected to significantly enhance performance in AI inference and training, thereby supporting future market demand [3].