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Nvidia Earnings: A Quick Summary

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Nvidia (NVDA - Free Report) , undoubtedly the most highly-awaited company for the Q2 earnings season, has finally delivered its results. So far, shares have faced an adverse reaction, down in after-hours trading.

Let’s take a quick look at what the company delivered.

Nvidia Reports Record Sales

The AI favorite generated record quarterly sales of $30 billion, reflecting a 15% sequential jump from Q1 and an even more impressive 122% year-over-year climb. The company’s sales growth has been remarkable, with this period’s results penciling in the fourth consecutive quarter of triple-digit percentage year-over-year top-line growth.

Of course, Data Center results were the true focal point of the release, which again delivered in a big way. Data Center sales reached a quarterly record of $26.3 billion, up 16% sequentially from Q1 and 154% on a year-over-year stack.

Jensen Huang was unsurprisingly bullish on the Data Center, stating, ‘Hopper demand remains strong, and the anticipation for Blackwell is incredible.’

He continued, ‘NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.’

Though its gross margin did fall sequentially, the 75.7% print reflected continued margin expansion relative to the year-ago period.

Nvidia’s gaming results are also a key area that investors should keep a close eye on in future periods, particularly as AI PCs continue to gain steam. Gaming revenue reached $2.9 billion, reflecting a nice 16% year-over-year climb from the year-ago period.

Concerning the outlook for Q3, Nvidia expects sales of $32.5 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 74.4% and 75.0%, respectively.

Should You Buy Nvidia Shares?

Nvidia (NVDA - Free Report) has finally delivered its Q2 results, with the reaction post-earnings negative so far despite posting another record-breaking release that re-confirmed robust demand. The stock remains a prime selection for those seeking AI exposure, and short-term price movements should be ignored by those with a long investing horizon.


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