Nvidia Q2 Profit Soars 59% on 56% Revenue Surge Amid AI Growth

NVIDIA reported a stellar second quarter for fiscal 2026, with revenue soaring 56% year-over-year to $46.7 billion and net income rising 59% to $26.4 billion, driven primarily by strong demand for its Blackwell AI platform. The company's data center segment, which is critical to its AI leadership, generated $41.1 billion in revenue, despite missing market expectations for the second consecutive quarter, partly due to no H20 GPU shipments to China amid U.S. export controls. CEO Jensen Huang emphasized the rapid adoption and extraordinary demand for Blackwell Ultra, highlighting partnerships with major firms like Disney and TSMC, and projecting a $3 to $4 trillion AI infrastructure spend by decade’s end. NVIDIA's gaming division also performed well, with $4.3 billion in revenue supported by its fastest-ramping GeForce RTX 5060 GPU, alongside double-digit growth in professional visualization and automotive segments. Despite exceeding earnings and revenue forecasts and providing an optimistic outlook of $54 billion revenue for the next quarter, NVIDIA's stock faced pressure due to high market expectations and concerns over data center growth slowing. The company continues to invest heavily in shareholder returns, having authorized $60 billion in additional share repurchases, while navigating geopolitical challenges impacting the China market.