Nvidia delivered another beat in the fiscal second quarter, with revenue and profit ahead of Wall Street forecasts. Total revenue came in at $96.2 billion, above the consensus estimate of $92.27 billion. Data center revenue was $89 billion, also ahead of the $85.4 billion analysts were looking for. Earnings per share reached $2.22, beating the expected $2.09.
The numbers reflect continued demand for AI compute. CEO Jensen Huang said AI has reached a turning point and that compute is now generating revenue. I think that is a fair way to describe the current situation. Nvidia keeps finding ways to sell more high-end chips and networking gear, and the market is still absorbing them.
Guidance points to another huge quarter
For the fiscal third quarter, Nvidia guided to roughly $108 billion in revenue. Wall Street had projected $103.9 billion, so the company came in above expectations. The guidance also stands out because crossing $100 billion in a single quarter is rare. Only nine companies in the S&P 500 have previously reported quarterly revenue at that level.
Gross margin is expected to slip a little. The company guided third quarter gross margin to 74%, down from 75% in the second quarter. It isn’t a major change, but it may draw attention as Nvidia ramps newer products and the revenue mix shifts.
Shares dip slightly after hours
Despite the beat and the strong outlook, shares moved modestly lower in after-hours trading. That is becoming a familiar pattern for Nvidia. The stock has already priced in a lot of good news, and investors sometimes seem to expect even more. The post-earnings move has been quiet so far, which suggests the market is still weighing the numbers.
Bitcoin, for what it’s worth, remains in a tight range just above $78,000. It’s not directly tied to Nvidia, but it is part of the broader risk asset picture right now.
The main takeaway is pretty simple. Nvidia is still growing quickly, data center demand remains strong, and the company expects another record quarter. The open questions are how long the pace can hold and how much of that is already reflected in the stock price. Nobody seems ready to answer those with confidence yet. For now, though, the numbers are hard to argue with.
