NVIDIA (NVIDIA) announced a record high of USD 46.74 billion in the second quarter of the 2026 year, with a profit of USD 26.42 billion, both better than market expectations, and estimated that the third quarter would reach USD 54 billion, which is currently floating 2%, higher than the analyst's average estimate of USD 53.14 billion. However, the data center investment failed to meet expectations for two consecutive quarters, and the AI bubble suspected of triggering a market decline of about 5%.
NVIDIA's second quarter closed at US$46.74 billion, compared with US$30.04 billion in the same period last year, with a growth of 56%. This is the slowest growth in NVIDIA's nine-quarters since the 2023 generic AI craze began to be reflected in industry performance. NVIDIA's continuous growth rate exceeded 50% in nine consecutive quarters, but the second quarter of the year in 2026 is the slowest growth period.
According to NVIDIA's estimate of the third quarter revenue of US$54 billion, which is a 2% negative. This number does not include any H20 shipments to China. After Huang Rensha met with US President Trump in the second quarter, it was expected to obtain permission for China to ship H20 chips and estimate that it can make additional revenue.
NVIDIA financial boss Colette Kress said that no H20 chips were sold to China in the second quarter, but the H20 stock worth $180 million was sold to a customer outside China, and if the geopolitical environment allows, NVIDIA could have achieved a H20 sales amount of $2 billion to $5 billion in the second quarter.
NVIDIA's profits reached US$26.42 billion in the second quarter, up 59% from US$16.6 billion in the same period last year, earnings per share (EPS) of US$1.05. The core can come from the Data Center business, but the Data Center closed US$4.11 billion, up 56%, which is still below the market estimate of US$41.34 billion, which is lower than the market estimate of US$41.34 billion. This is the second consecutive quarter below expectations.
Kress said the $33.8 billion collected by NVIDIA data centers came from "computing (i.e. GPU chips), down 1% from the first quarter because H20 sales decreased by $4 billion and $7.3 billion from online parts, which was used to create NVIDIA's more complex system, which will nearly double the year.
Kress pointed out that large cloud service providers account for about half of NVIDIA's data center business, and these customers are currently purchasing the latest generation of Blackwell chips, prompting Blackwell sales to grow 17% compared with the first quarter, while NVIDIA's gaming division closed $4.3 billion, a 49% increase year-on-year, and the robotics division closed $586 million, a 69% increase year-on-year, which is still relatively small.
NVIDIA's board of directors approved an additional $60 billion in stock repurchase plan, which did not expire, and had repurchased $9.7 billion in stock in the second quarter. Kress also told analysts at the financial conference that NVIDIA predicted that by the end of this century, AI-based facilities investment will reach $3 to $4 trillion, but due to investors' worries about the AI bubble and Chinese business may be suspended, dragging NVIDIA's stock price down by about 5%.
Nvidia Earnings Beat Expectations but Shares Fall; S&P Closes at Record
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