Nvidia just delivered another earnings beat that proves the AI infrastructure gold rush isn't slowing down. The chip giant reported $46.74 billion in Q2 revenue—crushing Wall Street estimates—and promised sales growth will stay above 50% next quarter, sending a clear signal that demand for AI computing power remains insatiable despite mounting competition.
Nvidia just proved that two years into the AI boom, the party is far from over. The chip giant's Q2 earnings beat sent a resounding message to Wall Street: AI infrastructure demand isn't just sustained—it's accelerating toward what finance chief Colette Kress calls a "$3 to $4 trillion" spending cycle by 2030.
The numbers tell the story of an industry still in hypergrowth mode. Revenue hit $46.74 billion, beating analyst estimates of $46.06 billion, while adjusted earnings per share of $1.05 topped the $1.01 consensus. More importantly, Nvidia guided next quarter revenue to $54 billion—a figure that assumes zero H20 chip sales to China but still represents continued 50%-plus growth.
Data center revenue drove the beat, surging 56% year-over-year to $41.1 billion. While that figure came slightly short of StreetAccount's $41.34 billion estimate, it marked the division's continued dominance as cloud giants Meta, Google, Microsoft, and Amazon pour tens of billions quarterly into AI infrastructure buildouts.
The quarter revealed the intricate dynamics of Nvidia's business transformation. Of the $41.1 billion in data center sales, $33.8 billion came from "compute"—the core GPU chips that power AI training and inference. That figure actually declined 1% sequentially due to $4 billion less in H20 sales, the China-specific chips that remain caught in geopolitical crossfire. Meanwhile, networking revenue nearly doubled to $7.3 billion as customers demand increasingly sophisticated systems.
Wall Street's reaction was mixed, with shares slipping in after-hours trading despite the beat. The stock's muted response reflects growing investor scrutiny over data center revenue missing estimates for the second consecutive quarter. Yet Nvidia's long-term positioning remains formidable, with Blackwell—the company's latest GPU generation—accounting for about 70% of data center revenue and posting 17% sequential growth.
The China wildcard looms large over future quarters. Nvidia sold zero H20 chips to China during Q2 but released $180 million in H20 inventory to customers outside China. Kress indicated the company could ship $2 to $5 billion in H20 revenue next quarter "if the geopolitical environment permits"—a massive swing factor that could supercharge already robust growth projections.
