Nvidia reported stronger-than-expected earnings for the second quarter of fiscal 2026, driven by demand for its AI chips.
The chipmaker posted earnings per share (EPS) of $1.05, beating Wall Street’s estimate of $1.01. Revenue came in at $46.7 billion, above the expected $46.1 billion and up 56% year-over-year.
Nvidia’s data center unit, its largest business, generated $41.1 billion, slightly below forecasts of $41.3 billion. The company cited weaker sales in China due to U.S. restrictions on its H20 chips. However, results were boosted by a $180 million release of reserved H20 inventory.
The gaming segment also delivered strong growth, with sales reaching $4.3 billion, up 49% from a year earlier. Looking ahead, Nvidia expects $54 billion in revenue for the third quarter, above analysts’ projections of $53.4 billion.
CEO Jensen Huang said demand for Nvidia’s AI products remains strong worldwide. “AI is transforming every industry,” he noted, emphasizing the company’s long-term growth outlook.
Despite the earnings beat, Nvidia’s shares fell more than 3% in after-hours trading, reflecting investor concerns over China-related challenges.
