Nvidia (NVDA) reported its Q2 earnings on Wednesday, beating Wall Street’s expectations on the top and bottom lines and providing a better-than-expected outlook for the third quarter.
For Q2, Nvidia saw adjusted earnings per share (EPS) of $2.22 on revenue of $96.2 billion, which is better than the EPS of $2.09 and revenue of $92.3 billion that Wall Street was anticipating.
The company also says it is projecting Q3 revenue of between $105.8 billion. and $110.1 billion. Wall Street was calling for $1.51 billion.
Despite the beat and raise, Nvidia stock fell more than 2% following the news.
Nvidia’s Data Center revenue, which includes Hyperscalers and AI Clouds, Industrial, and Enterprise (ACIE), came in at $89 billion versus a projected $85.8 billion.
Nvidia CFO Colette Kress said in her quarterly commentary that Hyperscale revenue more than doubled in Q2 and that ACIE revenue increased 138%.
Edge Computing, which includes Nvidia’s other businesses such as physical AI and gaming, brought in $7.2 billion. Analysts were expecting $6.6 billion.
Nvidia’s report comes as chip stocks have struggled over the past three months amid fresh fears about whether companies will see returns on their vast AI investments.
Microsoft (MSFT), Amazon (AMZN), and Google (GOOG, GOOGL) helped allay at least some of those fears, thanks to strong growth numbers in their respective cloud businesses, though Google, along with Meta (META), spooked investors on increased spending.
FILE PHOTO: Nvidia CEO Jensen Huang speaks during a doorstep after attending the AI Ecosystem Reception in Tokyo, Japan, July 16, 2026. REUTERS/Manami Yamada/File Photo · REUTERS / REUTERS
Nvidia continues to derive the majority of its revenue from hyperscalers such as Amazon, Google, and Microsoft. But each of those companies either builds its own chips to reduce its dependence on Nvidia or sells them to third-party customers, creating a potential headwind for the company in the future.
Nvidia also continues to ink deals with companies across the AI ecosystem.
Earlier this month, the AI leader announced it is working with BlackRock, Blackstone, KKR, Apollo, Brookfield, and Goldman Sachs to establish a $500 billion pool of capital in a move that would securitize Nvidia’s GPUs. (Disclosure: Yahoo is a portfolio company of funds managed by affiliates of Apollo Global Management.)
The company also said it’s backing SB Energy and OpenAI’s efforts to build a massive 8-gigawatt data center in Ohio, with up to $150 billion in investment.
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