Nvidia Beats Q2 Estimates on Surging AI Chip Demand
Data Center revenue jumps 56% as the company issues a strong Q3 forecast and adds $60 billion to its share buyback program.
NVIDIA Corporation (NASDAQ: NVDA) reported second-quarter financial results that topped analyst expectations late Wednesday, propelled by sustained, feverish demand for its AI processors that power modern data centers.
The Santa Clara-based chipmaker posted revenue of $46.7 billion for the quarter ending July 27, 2025, beating the Wall Street consensus of $46.05 billion. Non-GAAP earnings per share came in at $1.05, slightly ahead of the $1.01 analysts had forecast. The company’s stock was little changed in after-hours trading, having already gained over 50% in the past six months.
The driving force behind the strong performance was NVIDIA’s Data Center segment, which generated $41.1 billion in revenue, a 56% increase from the same period a year ago. The results underscore the unabated global rush by corporations to build out their artificial intelligence infrastructure.
“The AI race is on, and Blackwell is the platform at its center,” said CEO Jensen Huang in a statement, referring to the company’s latest generation of AI chips. He noted that demand for the new platform is “extraordinary” and that production is ramping at full speed.
The results were achieved despite the absence of H20 chip sales to China-based customers due to U.S. export restrictions. NVIDIA said it benefited from a $180 million release of previously reserved inventory and about $650 million in sales of the chip to a customer outside of China.
Looking ahead, NVIDIA provided a bullish forecast for its third quarter, projecting revenue of approximately $54.0 billion, well above analyst estimates. The company also demonstrated confidence in its financial strength by authorizing an additional $60.0 billion for share repurchases, adding to the $14.7 billion remaining under its current plan.
Analysts remain positive on the company’s trajectory, citing accelerating shipments and strong demand for AI hardware. Baird recently raised its price target to $225, with other firms like Stifel and Wedbush also lifting their targets ahead of the report.