Ever wonder what powers the AI revolution? NVIDIA’s latest earnings report just dropped, and it’s a jaw-dropper! Their Q2 revenue hit a staggering $46.7 billion, largely thanks to booming AI data center demand. The Blackwell platform is taking the world by storm. How high can they go?
NVIDIA has once again demonstrated its unparalleled dominance in the burgeoning artificial intelligence sector, reporting a monumental second quarter for fiscal year 2026. The tech giant’s revenue soared to an astounding $46.7 billion, a clear testament to the insatiable demand for its cutting-edge data center products that are powering the global AI revolution.
The financial results underscored a period of exceptional growth, with NVIDIA’s revenue marking a 6% increase from the prior quarter and an impressive 56% surge compared to the same period last year. This remarkable performance was overwhelmingly propelled by its data center segment, which alone generated $41.1 billion, highlighting the critical role NVIDIA plays in enabling advanced AI infrastructure investments worldwide.
Despite these headline figures, the quarter was not without its complexities. The absence of H20 chip sales to China, a consequence of U.S. export restrictions, represented a potential revenue headwind. However, this impact was partially mitigated by a significant $180 million release of previously reserved inventory sold in other markets, allowing non-GAAP gross margins to remain robust at 72.3%, showcasing resilient profitability amidst a challenging geopolitical landscape.
CEO Jensen Huang enthusiastically lauded the Blackwell platform, describing its demand as “extraordinary” and emphasizing its crucial role in the company’s future. The platform, which saw a 17% sequential revenue growth in data centers, is now aggressively ramping up production for the Blackwell Ultra, positioning it as the undisputed centerpiece in the intense global AI chip market race, particularly for complex training and inference tasks requiring massive computational power.
Huang’s confidence is widely echoed across the industry, with the Blackwell platform anticipated to capture a substantial share of the rapidly expanding GPU technology market. Its seamless integration with NVLink for rack-scale computing is exceptionally timely, as the evolution of AI models demands unprecedented leaps in performance and processing capabilities for more sophisticated reasoning.
NVIDIA’s commitment to its investors remains steadfast, with the company returning a significant $24.3 billion through share repurchases and dividends in the first half of the fiscal year. Further signaling strong confidence in sustained cash flows, the board approved an additional $60 billion buyback authorization, building on the $14.7 billion remaining from prior approvals. A consistent quarterly dividend payout further reinforces this investor-centric strategy.
Looking ahead, NVIDIA projects robust third-quarter revenue of $54 billion, plus or minus 2%, a forecast that continues to factor in the ongoing challenges posed by the absence of H20 shipments to China. The company anticipates non-GAAP gross margins to reach 73.5%, with an ambitious target of mid-70% by year-end, while operating expenses are projected to rise, reflecting strategic investments in research and development and global expansion efforts.
Beyond the impressive NVIDIA revenue growth driven by data centers, the company is forging key partnerships with industry giants like Disney, Foxconn, and TSMC for Blackwell-powered servers. Innovations like Spectrum-XGS Ethernet are enhancing large-scale AI connectivity, and NVIDIA is deepening its European ties, collaborating with nations like France and Germany to accelerate industrial transformation through AI infrastructure development, solidifying its data center dominance.
The gaming segment also contributed significantly with $4.3 billion in revenue, fueled by the rapid adoption of GeForce RTX 5060 and DLSS 4 technology. Professional visualization and automotive/robotics segments also reported strong growth, underscoring NVIDIA’s diversified portfolio and its wide-ranging impact across various high-tech industries, indicating broader chip industry trends.
