• By Shreyansh Mangla
  • Thu, 28 Aug 2025 12:39 PM (IST)
  • Source:JND
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NVIDIA Earnings Rise 56%: NVIDIA, a manufacturer of GPUs and SoCs (system on chips), saw a phenomenal jump in its Q2 FY26 earnings, reporting total revenue of USD 46.7 billion. This represents a significant increase from the previous quarter, up 56 per cent year-over-year and 6 per cent quarter-over-quarter.

The company's success was primarily driven by its data center business, which generated USD 41.1 billion, a 56 per cent year-over-year increase. A key product recently launched by NVIDIA, the 'Blackwell Data Center', saw its revenue grow by 17 per cent over the last quarter. The company's earnings per share (EPS) of USD 1.08 also increased by a massive 61 per cent year-over-year.

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Looking ahead, NVIDIA projects Q3 revenue of around USD 54 billion. The company also announced plans to return USD 24 billion to shareholders and authorised a new USD 60 billion stock buyback program. The company reported a high non-GAAP gross margin of 72.7 per cent and projected a positive outlook.

NVIDIA is also thriving on its AI chipset sales, but analysts have raised concerns that the AI market might be a bubble. The company's data center division posted a strong revenue of USD 41.1 billion, but some analysts expected an even higher number. NVIDIA has decided to invest USD 3 trillion to USD 4 trillion in its AI initiatives. "We are in the beginning of a buildout," stated NVIDIA CEO Jensen Huang in the company's conference on Wednesday.

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Nvidia Earnings Stock Market

Despite these huge announcements, the company's stock slipped 3 per cent in Q2 due to investor fears. While the company's revenues have doubled or even tripled in the past couple of years, growth has been slowing down for the past four quarters. This year, the tech industry isn't the only one getting a boost from AI; the stock market is also gaining momentum, with the S&P 500 gaining 69 per cent since the end of 2022, largely due to investor interest fueled by AI hopes.