Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [37]. Core Insights - NVIDIA reported FY26Q2 revenue of $46.7 billion, a 56% year-over-year increase and a 6% quarter-over-quarter increase, driven by strong demand in data centers and AI applications [2][7]. - The data center revenue reached $41.1 billion, reflecting a 56% year-over-year growth and a 5% quarter-over-quarter growth, primarily due to the demand for large language models and AI applications [3][7]. - The company expects FY26Q3 revenue to be approximately $54 billion, with GAAP and non-GAAP gross margins projected at 73.3% and 73.5%, respectively [4][9]. Summary by Sections 1. FY26Q2 Performance Overview - NVIDIA's FY26Q2 revenue was $46.7 billion, with data center revenue at $41.1 billion, both showing significant growth [2][7]. - The gross margins for the quarter were 72.4% (GAAP) and 72.7% (non-GAAP), with a slight adjustment due to the reversal of inventory provisions [2][3]. 2. Business Segment Performance - **Data Center**: Revenue of $41.1 billion, up 56% year-over-year, driven by AI applications and the Blackwell architecture [3][7]. - **Gaming**: Revenue of $4.287 billion, a 49% year-over-year increase, supported by strong sales of Blackwell products [8]. - **Professional Visualization**: Revenue of $601 million, up 32% year-over-year, driven by sales in AI workflows and real-time graphics [8]. - **Automotive**: Revenue of $586 million, a 69% year-over-year increase, primarily due to strong demand for autonomous driving platforms [8]. 3. FY26Q3 Guidance - The company anticipates FY26Q3 revenue of approximately $54 billion, with gross margins expected to remain stable [4][9]. 4. Conference Insights - The growth in AI applications is expected to drive significant demand for computational power, with NVIDIA's platforms positioned to capture a substantial share of the $3-4 trillion AI infrastructure opportunity by the end of the decade [11][22]. - The company is focusing on enhancing performance per watt to maximize revenue potential in energy-constrained data centers [14][16].