Nvidia Stock Price Dips Despite Record-Breaking $46.7 Billion Q2 Revenue

Nvidia announced its fiscal Q2 2026 earnings on Wednesday. The chipmaker reported a massive $46.7 billion in revenue. This figure marks a significant 56% increase from the same period last year.

The stellar performance was largely driven by its data center segment. According to the company’s release, data center revenue surged to $41.1 billion. This growth is attributed to high demand for its new Blackwell AI platform.

Blackwell Platform Demand Called “Extraordinary” by CEO

Nvidia CEO Jensen Huang expressed strong confidence in the new technology. He called Blackwell “the AI platform the world has been waiting for.” Huang noted production is ramping up at full speed to meet “extraordinary” demand.

The company is already positioning its next iteration, the Blackwell Ultra. This platform is central to the ongoing global artificial intelligence race. It offers a revolutionary leap in computing power for AI training and inference.

Market Reaction Contradicts Strong Financial Performance

Despite the overwhelmingly positive report, Nvidia’s stock price fell. In after-hours trading, shares sank more than 2%. This dip occurred while broader market indices like the S&P 500 saw slight gains.

Analysts had anticipated a potential pullback. A Mizuho Securities analyst, cited by Investor’s Business Daily, predicted a modest 3-4% move. The decline reflects lingering market worries about a potential AI spending bubble, as reported by AFP.

China Sales and Future Outlook

The quarter saw no sales of its H20 chips to China-based customers. This is due to ongoing U.S. export restrictions on advanced technology. However, Nvidia did benefit from a $180 million release of previously reserved H20 inventory.

Looking ahead, Nvidia provided a strong outlook for Q3. The company expects revenue to be approximately $54.0 billion. Its forecast does not assume any future H20 shipments to the Chinese market.

The disconnect between Nvidia’s record financials and its falling stock price highlights Wall Street’s complex expectations. Investors are weighing incredible current performance against future risks in the volatile AI market. This makes Nvidia stock a key indicator of tech sector sentiment.

Info at your fingertips-

Why did Nvidia’s stock fall after good earnings?

Despite strong results, the stock dip is attributed to profit-taking and market concerns. Investors worry about a potential AI spending bubble that could slow future growth.

What is Nvidia’s Blackwell platform?

Blackwell is Nvidia’s newest AI GPU architecture. CEO Jensen Huang has called it a revolutionary platform for AI training and inference, seeing extraordinary demand.

How much revenue did Nvidia make in Q2?

Nvidia reported Q2 revenue of $46.7 billion. This represents a 56% increase from the same quarter last year, driven by data center sales.

Did Nvidia sell chips to China in Q2?

No. The company reported no H20 chip sales to China due to U.S. export restrictions. It did recognize revenue from selling reserved inventory to a non-China customer.

What is Nvidia’s forecast for next quarter?

Nvidia provided an optimistic outlook for Q3. The company expects revenue to be around $54.0 billion, plus or minus 2%.

Sources: Nvidia Corporation, Investor’s Business Daily, AFP, Mizuho Securities.