Nvidia reported fiscal Q2 revenue of USD 46.7 billion, up 56% year-on-year, and earnings per share of USD 1.05, slightly above consensus. Revenue growth slowed from 69% in the prior quarter. The company announced a USD 60 billion share repurchase program. Data center revenue of USD 41.1 billion came marginally below forecasts. Q3 revenue guidance of USD 54 billion matched consensus but disappointed some investors. No H20 chip sales to Chinese customers in Q2 created a USD 4 billion shortfall and were excluded from the Q3 outlook. Management flagged potential upside if licensing approvals accelerate and noted that any US government request for revenue share could lead to litigation.
For the fiscal second quarter, Nvidia reported revenue of USD 46.7 billion, a 56% increase year-on-year, and earnings per share of USD 1.05, both slightly ahead of consensus expectations. However, revenue growth continued to slow, down from 69% in the previous quarter and a peak of 265% in 2024. The company also announced a USD 60 billion share repurchase program, underscoring management's long-term confidence. However, despite beating estimates, the data center division came in marginally below forecasts at USD 41.1 billion.
Indeed, Nvidia recorded no H20 chip sales to Chinese customers in Q2, representing a USD 4 billion shortfall. The outlook for Q3 also excluded those sales, though the company sees a potential upside if licensing approvals accelerate, while the company mentioned that any request for a percentage of the revenue by the US government could lead to litigation. CEO Jensen Huang remained upbeat on the broader outlook, forecasting USD 3-4 trillion in global AI infrastructure spending by decade's end.
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