Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares retreated more than 2% to about $177 after the chipmaker reported a miss for data center revenue for the second quarter.
For Q2, Nvidia reported revenue of $46.7 billion, exceeding Wall Street’s estimate of $46.06 billion and marking a 56% increase from the same period last year. Revenue rose 6% compared with the first quarter.
Data Center revenue totaled $41.1 billion, up 5% sequentially and 56% year-over-year, with sales of the company’s Blackwell platform growing 17% from the prior quarter. This was below Wall Street estimates of $41.2 billion.
Nvidia said it made no H20 sales to China-based customers during the quarter, but said it benefited from a $180 million release of previously reserved H20 inventory.
GAAP earnings per diluted share were $1.08, up 42% sequentially and 61% year-over-year, while non-GAAP earnings were $1.05 per share, topping the consensus estimate of $1.01.
Excluding the H20 release and related tax impact, non-GAAP earnings would have been $1.04 per share.
Gross margins were 72.4% on a GAAP basis and 72.7% on a non-GAAP basis. Excluding the H20-related release, non-GAAP gross margin would have been 72.3%.
Net income rose 59% year-over-year to $26.4 billion on a GAAP basis.
Looking ahead, NVIDIA expects third-quarter revenue of approximately $54 billion, plus or minus 2%, with gross margins projected at about 73.5% on a non-GAAP basis.
“Nvidia NVLink rack-scale computing is revolutionary, arriving just in time as reasoning AI models drive orders-of-magnitude increases in training and inference performance,” Nvidia CEO Jensen Huang said in a statement. “The AI race is on, and Blackwell is the platform at its center.”