Nvidia Reports Strong Q2 Results

Nvidia reported better-than-expected Q2 results on Wednesday and announced a $50B stock buyback program.

Market Reaction

NVIDIA Corporation (NASDAQ: NVDA) dropped around 3% in premarket trading Thursday.

Q2 Financials

For the three months ended Jul. 28, Nvidia reported:
– Adjusted Earnings: $0.68 per share
– Revenue: $30.04 billion
Estimates were $0.64 and $28.68B, respectively.

The quarterly results were boosted by a 154% surge in data center revenue, reaching $26.27B from the previous year.

Q3 Outlook

For Q3, Nvidia expects revenue of $32.5B (±2%), exceeding Wall Street’s estimate of $31.9B.

Stock Buyback

Nvidia announced an additional $50.0B share buyback plan.

Future Production

The company anticipates increasing production of its Blackwell AI chips starting in Q4, extending into fiscal 2026. Nvidia forecasts shipping “several billion dollars in Blackwell revenue” in Q4.

Gross Margins

Nvidia has guided non-GAAP gross margins to 75.0%, consistent with consensus expectations. Full-year margins are projected to remain in the mid-70% range, with a slightly lower Q4 margin compared to the ~75% in FQ3.

Analyst Insights

Citi analysts claim the results were better than expected due to “robust AI demand strength.” Following the report, Bernstein raised its price target on NVDA shares from $130 to $155, emphasizing strong sequential growth potential into year-end.

Wells Fargo also increased its price target for Nvidia from $155 to $165, encouraging investors to “buy the pullback.”

Senad Karaahmetovic contributed to this report