Nvidia crushes Q2 earnings—but traders hit pause on the party

Nvidia announced its Q2 2025 earnings report on Wednesday, showcasing notable growth in both revenue and earnings that outpaced Wall Street projections. While data center revenue surged 56%, it slightly missed analyst estimates, leading to a 3% drop in the company's stock price in after-hours trading, as per Yahoo Finance.

The tech giant reported adjusted earnings per share of $1.05 on $46.74 billion in revenue, surpassing expectations of $1.01 EPS and $46.06 billion in revenue, according to CNBC. Nvidia foresees Q3 revenue at around $54 billion, possibly exceeding projected analyst figures of $53.1 billion, says CNBC. Despite challenges from halted H20 chip sales to China, Nvidia remains optimistic about its future earnings.

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Impact and future outlook

As reported by CNBC, Nvidia’s data center business plays a pivotal role in its growth amid the AI explosion, contributing $41.1 billion to the quarter’s revenue. Half of these sales derived from large cloud service providers, drawn by Nvidia's advanced Blackwell chips.

Moreover, Nvidia's gaming division contributed $4.3 billion in sales, marking robust growth and serving as a pillar alongside the promising but smaller robotics division, according to Yahoo Finance. The company emphasized its commitment to AI infrastructure, underscored by a $60 billion addition to its stock buyback program, underscoring confidence in long-term growth, says CNBC.

Trade tensions with China impacted Nvidia’s potential extra revenue from the halted H20 chip sales, worth an estimated $8 billion, according to CNBC. However, Nvidia assured future readiness following meetings with President Donald Trump, the report said, aiming for licenses to commercialize these chips in China.

Nvidia's strategic moves and expanding business segments demonstrate its focus on reinforcing its position in AI technologies, ensuring sustained growth amidst evolving market dynamics.