Nvidia Earns $26.4bn in Q2 – So Why Did the Stock Slip?

Nvidia posted another record quarter, but the stock slipped as investors worried about China and whether the AI spending boom is slowing. For the three months ended July 27, 2025, Nvidia made $46.7B in revenue and $26.4B in profit.

Data-centre sales rose 5% to $41.1B, with Blackwell systems up 17%. For next quarter, Nvidia expects $54B in revenue and is assuming no H20 chip shipments to China.

Stock market information for NVIDIA Corp (NVDA)

• NVIDIA Corp is an equity in the USA market.
  
• The price is 181.6 USD currently, with a change of -0.21 USD (-0.00%) from the previous close.
  
• The latest trade time is Thursday, August 28, 09:10:38 +0100.

What moved the market

• China is still a question mark. Nvidia recorded no H20 sales to China in Q2. It did free $180M of previously reserved H20 inventory and booked about $650M in unrestricted H20 sales to a non-China customer, but the near-term outlook does not include China shipments. Shares drifted lower as traders weighed how quickly that market can reopen.
  
• A rare, controversial revenue-share deal is in limbo. Multiple outlets report a U.S. arrangement that would require 15% of revenue from certain China AI-chip sales (e.g., H20) to be paid to the government in exchange for export licenses. Nvidia now says that the requirement isn’t fully finalised, adding another layer of policy risk.
  
• “Beat, but not breathtaking” vibe. The company’s guide topped the Street, yet some coverage flagged Data Centre results as just a touch light versus the highest estimates, feeding a mild “AI capex cool-down” narrative. The stock slipped ~2–5% in extended and European trading despite the beat.

The numbers that matter

• Revenue: $46.7B (+56% y/y; +6% q/q)
  
• Data Center: $41.1B (+56% y/y; +5% q/q)
  
• EPS: GAAP $1.08; non-GAAP $1.05
  
• Q3 Outlook: $54B (±2%), ex-China H20
  
• Capital return: New $60B buyback authorisation (no expiry)
  All per Nvidia’s official release.

Strategy check: Blackwell now, Rubin next

CEO Jensen Huang says Blackwell demand is “extraordinary,” with rack-scale NVLink systems aimed at the next wave—reasoning AI and physical AI—while Rubin is on deck for 2026 product cycles. That roadmap underpins the revenue guide even without China.

The China path from here

Even if H20 approvals progress, Beijing’s push toward local alternatives and evolving U.S. rules create timing risk. That’s why Nvidia excluded China H20 from guidance, a stance echoed across independent coverage. Net-net: upside exists, but the company isn’t counting on it.

Investor takeaway

Operationally, Nvidia is still compounding: new platforms shipping, margins near the mid-70s (non-GAAP), and a jumbo buyback. The wobble in the share price looks less about the quarter and more about policy overhang and AI-spend pacing. If China re-opens meaningfully, or if Blackwell ramps faster than expected,those are catalysts. If not, the core thesis still rests on global build-outs of AI compute.