Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $46.7 billion, exceeding expectations and showing sequential growth across all market platforms [6][30] - Data center revenue grew 56% year over year, with a sequential increase despite a $4 billion decline in previous revenue [6][30] - GAAP gross margin was 72.4%, and non-GAAP gross margin was 72.7%, benefiting from previously reserved inventory [30][32] Business Line Data and Key Metrics Changes - Data center revenue was significantly driven by the Blackwell platform, which grew sequentially by 17% [7][8] - Gaming revenue reached a record $4.3 billion, a 14% sequential increase and a 49% year-over-year jump, driven by Blackwell GeForce GPUs [25][26] - Professional visualization revenue increased by 32% year over year, reaching $601 million, fueled by high-end RTX workstation GPUs [27] - Automotive revenue, including in-car compute revenue, was $586 million, up 69% year over year, primarily due to self-driving solutions [28] Market Data and Key Metrics Changes - China represented a low single-digit percentage of data center revenue, with significant revenue from Singapore, accounting for 22% of billed revenue [25] - The European Union plans to invest €20 billion to establish AI factories, indicating a growing market for AI infrastructure [19] Company Strategy and Development Direction - The company is focusing on AI infrastructure, anticipating $3 to $4 trillion in AI infrastructure spending by the end of the decade [7][43] - The transition to the new GB 300 architecture is expected to enhance performance and efficiency, with widespread market availability anticipated in the second half of the year [9][10] - The company aims to maintain its leadership in AI technology and compete globally, emphasizing the importance of developer support [11][14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the rapid growth in AI infrastructure investments, driven by various factors including reasoning agentic AI and enterprise AI adoption [14][96] - The geopolitical environment remains a concern, particularly regarding shipments to China, with potential revenue of $2 billion to $5 billion in Q3 if issues are resolved [12][46] - The company expects total revenue for Q3 to be around $54 billion, with continued growth driven by data center and gaming segments [32][33] Other Important Information - The company returned $10 billion to shareholders through share repurchases and dividends, with a new $60 billion share repurchase authorization approved [31] - The company is on track for significant growth in sovereign AI revenue, expecting over $20 billion this year, more than double from the previous year [19] Q&A Session Summary Question: What is the vision for growth into 2026? - Management emphasized the evolution of reasoning agentic AI as a key growth driver, with significant increases in computational requirements [39][40] Question: What needs to happen for H20 shipments to China? - Management indicated that geopolitical issues need resolution, and there is potential for $2 billion to $5 billion in shipments if licenses are approved [48][49] Question: How does NVIDIA view the competitive landscape with ASICs? - Management noted that while many ASIC projects are initiated, few reach production due to the complexity of accelerated computing compared to general-purpose computing [50][51] Question: What is the opportunity for Spectrum XGS? - Management highlighted that Spectrum XGS is crucial for connecting multiple data centers and AI factories, with significant potential for revenue growth [73][78] Question: How does the company view the long-term prospects in China? - Management estimated a $50 billion opportunity in China this year, with expectations for 50% annual growth, emphasizing the importance of addressing this market [67][68]