publication
2025-08-27 23:24
Despite the ban on the sale of chips to China, Nvidia presented an increase in revenues and financial results exceeding the expectations of most analysts. Despite this, the initial market reaction was negative
In the previous accounting quarter (which NVIDIA calls the second quarter of 2026) the chip manufacturer recorded $ 46.7 billion in sales revenues. This is the result exceeding the market consensus at USD 46 billion. What's more, the company from Santa Clara clearly pointed out that in the previous quarter it did not sell H20 chips to customers from China. Despite this, the total sales value was 6% higher than in the previous quarter and by 56% higher than a year ago.
For nearly 88% of Nvidia revenues, the sale of processors to data centers, which generated almost USD 41.1 billion, revenues. This result is 5% higher than in the previous quarter and 56% higher than a year ago. For comparison, the gaming department generated less than USD $ 4.3 billion, i.e. almost 10 times less than data centers.
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The gross margin was 72.4%, which was the result of 0.3 points. percent higher than the median forecasts of analysts. Therefore, in this respect, Nvidia managed to beat the market consensus. Net profit reached USD 26.42 billion, growing by 40% relative to the previous quarter as well as by nearly 60% in terms of year on year. The profit per share amounted to USD 1.05 and was higher than $ 1.01 expected by the market.
Despite this, Nvidia's shares were cheaper by nearly 2%, at 23:15 Polish time, reaching the price of 177.70 USD. This year's maximum designated several days ago is USD 184.48. From the beginning of 2025, the capitalization of NVIDIA rose by 35.4% after an increase of 171% in 2024 and 239% a year earlier.
The company announces that Blackwell chips will prove to be a breakthrough, which will bring another 1 billion dollars of sales revenues. – Blackwell is the AI platform that the world was waiting for. It provides a generational jump. The production of Blackwell Ultra goes full steam, and the demand is extraordinary – this is how the quarterly founder and Nvidia CEO Jensen Huang commented in its style.
The management of NVIDIA announced that in the current rotary quarter the company will generate $ 54 billion in USD +/- 2%. This respect does not assume a return to the Chinese market with H20 chips. Analysts from Wall Street expected revenues of USD 53 billion. The board forecast also talks about the gross margin of 75.3% (in the shot of GAAP) +/- 50 pb.
In addition, the management of NVIDIA approved an additional purchase program of own shares, on which $ 60 billion will be spent. During the previous two rotary quarters, the California company issued USD 24.3 billion on its own shares. In addition, it is the shareholders who will go to the action of a quarterly dividend. The dividend day will be September 11, and the day of payment is 2 October.
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