Nvidia(US:NVDA) Guan Cha Zhe Wang·2025-08-28 05:35Core Viewpoint - Nvidia's Q2 earnings report for fiscal year 2026 fell short of investor expectations despite showing significant revenue growth, primarily due to concerns over its data center business and lack of sales in the Chinese market [1][4]. Financial Performance - Q2 total revenue reached $46.7 billion, up from $30.04 billion year-over-year, representing a 56% increase, slightly above market expectations of $46.058 billion [1][2]. - Non-GAAP diluted earnings per share were $1.05, compared to $0.68 in the same quarter last year, marking a 54% increase [2]. - Data center revenue was $41.1 billion, also a 56% year-over-year increase, but slightly below analyst expectations of $41.29 billion [1][3]. - Gross margin (non-GAAP) decreased to 72.7% from 75.7% year-over-year [2]. Business Segment Performance - Gaming and AI PC revenue was $4.3 billion, up 49% year-over-year, exceeding analyst expectations of $3.82 billion [2]. - Professional visualization revenue reached $601 million, a 32% increase year-over-year, surpassing expectations of $532 million [2]. - Automotive and robotics revenue was $586 million, up 69% year-over-year, also exceeding analyst expectations [2]. Data Center Business Insights - The data center business, which accounts for 88% of total revenue, showed a slowdown in growth, with a year-over-year increase of 56% compared to 73% in the previous quarter [3]. - The Blackwell series GPUs saw a 17% increase in sales quarter-over-quarter, contributing significantly to data center revenue [3]. Market Concerns - Nvidia's stock fell over 5% in after-hours trading following the earnings report, attributed to the underperformance of the data center business and conservative guidance for Q3 [4]. - The company did not include any revenue from AI chips sold in China in its Q3 outlook, indicating a cautious approach due to regulatory challenges [5][6]. - The inability to sell the H20 chip in China resulted in a $4 billion revenue loss, as confirmed by CEO Jensen Huang [4][7]. Regulatory Challenges - Nvidia has faced significant hurdles in the Chinese market due to U.S. government restrictions on the H20 chip, which is crucial for its revenue in that region [4][7]. - The company is exploring new chip offerings for China but faces skepticism regarding the resolution of security concerns before any significant sales can occur [7].