Nvidia, the world’s most valuable company by market capitalisation, has reported revenue of $46.7 billion for the second quarter ended 27 July, up 6% from the previous quarter and up 56% from a year ago.
The revenue was slightly above analysts’ $46 billion forecast. However, the results mark a slowdown from the prior year’s 122% revenue growth and 168% profit rise.
According to CompaniesMarketCap, Nvidia’s market cap, as of August 2025, is approximately $4.4 trillion, placing it well ahead of peers Microsoft ($3.7 trillion) and Apple ($3.4 trillion).
The financial results show Nvidia’s Blackwell Data Centre revenue grew 17% sequentially.
The chipmaker notes there were no H20 chips sales to China-based customers in the second quarter.
This, after Nvidia reportedly instructed some component suppliers to halt production of its China-focused H20 graphics processing units, following Beijing’s crackdown on the US chipmaker.
The move came weeks after Chinese authorities directed domestic tech firms to stop purchasing the chips over alleged security concerns.
Nvidia notes it benefited from a $180 million release of previously reserved H20 inventory, from approximately $650 million in unrestricted H20 sales to a customer outside of China.
For the quarter, generally accepted accounting principles (GAAP) and non-GAAP gross margins were 72.4% and 72.7%, respectively. Excluding the $180 million release, the non-GAAP gross margin for the quarter would have been 72.3%, says the company.
For the quarter, GAAP and non-GAAP earnings per diluted share were $1.08 and $1.05, respectively. Excluding the $180 million release and related tax impact, non-GAAP diluted earnings per share for the quarter would have been $1.04, says the company.
“Blackwell is the AI [artificial intelligence] platform the world has been waiting for, delivering an exceptional generational leap – production of Blackwell Ultra is ramping at full speed and demand is extraordinary,” says Jensen Huang, founder and CEO of Nvidia.
“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. The AI race is on, and Blackwell is the platform at its centre.”
During the first half of fiscal 2026, Nvidia returned $24.3 billion to shareholders in the form of shares repurchased and cash dividends. As of the end of the second quarter, it had $14.7 billion remaining under its share repurchase authorisation.
On 26 August, the board of directors approved an additional $60 billion to the share repurchase authorisation, without expiration.
Nvidia will pay its next quarterly cash dividend of $0.01 per share on 2 October to all shareholders of record on 11 September.
Nigel Green, CEO of global financial advisory firm deVere Group, says Nvidia’s latest results underscore a turning point for markets – the AI leader is moving from hyper growth to high growth.
“This matters because markets have priced Nvidia as if its rate of expansion could continue indefinitely, and that level of outperformance was never sustainable.”
According to Green, Nvidia shares slid in after-hours trading as investors digested the signs of cooling.
He points out that competition is also increasing rapidly, as AMD and Intel are scaling new products, while hyperscalers are pushing their own in-house chips.
Green says US restrictions on H20 sales to China are limiting Nvidia’s access to a market its CEO estimates is worth $50 billion. Beijing, meanwhile, is actively supporting local chipmakers, he notes.
“Nvidia has been the undisputed champion of the AI boom, but margins are already eroding as rivals push into the space. Growth in AI demand is relentless, but Nvidia’s share of that grow this being squeezed. The story is no longer about one company dominating; it’s about an entire industry expanding at pace.”
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