Nvidia Q2 Earnings Beat Expectations, but China Market Concerns Remain. The world's most valuable company, Nvidia, smashed Wall Street's Q2 revenue forecasts, reporting $46.7 billion. However, investor focus remains on the impact of China market challenges and potential government restrictions on AI chip sales
Nvidia Q2 Revenue Soars to Record $46.7 Billion, Exceeding Expectations and Previous Quarter's Performance. The chipmaker's data center revenue fueled the growth, surpassing analyst forecasts and setting a new company record
Nvidia's Q2 data center revenue soared to nearly $41.1 billion, exceeding analyst predictions of $41.3 billion and fueling Morgan Stanley's forecast for continued business growth. This massive contribution drove Nvidia's record-breaking $46.7 billion in total revenue
Nvidia's Q2 earnings exceeded expectations, reporting adjusted EPS of $1.05 and net income of $25.78 billion, surpassing Wall Street's forecasts of $1.01 EPS and $24.7 billion
Nvidia’s top- and bottom-line figures account for annual increases of 6% and 42%, respectively trumping the year-earlier totals of $30 billion and $0.67 EPS.
Nvidia shares briefly fell 4% in after-hours trading following the release of the company’s earnings report. The stock hit an intraday high of $184.12 earlier this month, while Nvidia shares traded around $181 before market close Wednesday.
Nvidia will host a call with investors at 5 p.m. EDT. Some analysts are looking for answers from CEO Jensen Huang about the Chinese government pressuring domestic companies not to buy the company’s H20 AI processors over national security concerns, leading Nvidia reportedly to halt production. Morgan Stanley believes this “remains an important issue to resolve long term,” though it would likely be resolved “with both countries incentivized to enable access to U.S. hardware,” Moore wrote. Kevin Cassidy, an analyst for Rosenblatt Securities, wrote his firm believes Nvidia will introduce a “China-specific” alternative to the AI chip, which could “command a higher price point, better margins and offer a more competitive solution.”
WedBush Securities, in a note Wednesday led by Seth Basham, said Nvidia is one of 30 companies that will “define the future of the AI revolution over the coming years.” The brokerage dispelled fears Nvidia and other AI firms would be the victims of a broader “stock market bubble,” adding, “The potential for AI to drive productivity and economic growth dwarfs past technologies.”
As the last of the “Magnificent Seven” companies to report Q2 earnings this year, Nvidia closes out a three-month period of growing competition, specifically in China. Chinese semiconductor firm Cambricon reported a record $402 million profit over the first half of 2025, though Wall Street remains optimistic for Nvidia’s growth prospects while backed by demand for AI technology and data centers. Analysts for Evercore ISI wrote earlier this month they believed rising cloud demand at companies like Amazon indicates AI has “hit a tipping point at enterprises,” as Nvidia’s chips are the “solution of choice” for training AI language models. The brokerage noted Nvidia remains its “top pick” in the near term and lifted its price target for Nvidia’s stock to $214 from $190.
S&P 500 And Nasdaq Set New Record Highs—Here’s Why Wall Street Expects Rally Could Climb Further (Forbes)
Source: Original Article