AI giant Nvidia (NVDA) reported its second-quarter results after the market closed on Wednesday, beating expectations for both revenue and profit. The forecast for the current quarter also exceeded expectations.
Nvidia reported adjusted earnings per share of $0.68 on revenue of $30 billion in its fiscal second quarter. Analysts had expected earnings per share of $0.64 and revenue of $28.8 billion. That represents a 122% year-over-year increase in revenue; profits rose 168% from the same quarter last year.
The company also provided third-quarter revenue guidance of $32.5 billion, plus or minus 2%; analysts had expected $31.9 billion.
The chip giant’s shares lost about 3.5 percent in after-hours trading after the results were announced. In immediate reaction to the figures, the value fell by as much as 6 percent.
The bulk of that revenue came from Nvidia’s all-important data center business, which brought in $26.3 billion in the quarter, while Wall Street had expected $25 billion in revenue. That’s a 154% increase from the year-ago period, when the segment brought in $10.3 billion.
In a statement, CEO Jensen Huang said the anticipation for the company’s next-generation Blackwell chip is “incredible.”
CFO Colette Kress said in a statement: “The production increase at Blackwell is expected to begin in the fourth quarter and continue through fiscal 2026. We expect multi-billion dollar revenue for Blackwell in the fourth quarter.”
Kress’ statement goes on to say that the company “made a change to the Blackwell GPU mask to improve production yield.”
The company expects shipments of its current Hopper chips to “increase” in the second half of the year.
Nvidia also announced Wednesday that it is increasing its share repurchase authorization by $50 billion. At the end of the quarter, $7.5 billion remained of the company’s existing authorization.
Nvidia’s gaming division, once the company’s main revenue generator, reported revenue of $2.8 billion, up 16 percent from the previous year.
Nvidia is the world leader in AI chip design and software, controlling between 80 and 95 percent of the market, according to Reuters.
The company also plays a key role in the current AI trade on Wall Street, with nearly half of its revenue directly tied to tech giants like Microsoft, Amazon, Google and Meta.
Nvidia’s competitors aren’t resting on their laurels. Earlier this month, AMD announced it was acquiring ZT Systems in a deal valued at $4.9 billion. The move gives AMD more firepower to build AI system servers, which has been a major catalyst for Nvidia’s own sales.
And while this could give AMD a revenue boost, it doesn’t mean Nvidia’s reign as AI king will be under serious threat any time soon.
“There are emerging competitors like AMD that are starting to take a little bit of market share,” Stifel chief executive Ruben Roy told Yahoo Finance on Monday. “But when you look at the entire infrastructure spending cycle … which we believe will continue to increase, Nvidia seems to us to be best positioned to benefit from (the spending).”
Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.
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