Nvidia Stock Dips After Data Center Revenue Misses Estimates Despite Strong Earnings Beat

Nvidia's second-quarter earnings outperformed analyst expectations with adjusted EPS of $1.05 on $46.7 billion revenue, yet shares fell 3% in after-hours trading as data center sales of $41.1 billion narrowly missed the projected $41.3 billion. The semiconductor giant noted half its data center revenue came from cloud providers, while omitting China's H20 chip sales from results.

CEO Jensen Huang characterized demand for the new Blackwell platform as 'extraordinary,' but markets reacted to the slight revenue shortfall in Nvidia's growth engine. The company authorized $60 billion in stock buybacks and issued Q3 guidance of $54 billion±2%, above consensus estimates of $53.4 billion.

Despite the after-hours pullback, Nvidia shares remain up 35% YTD following its historic $4 trillion market cap achievement in July. The earnings spotlight continues to track how AI infrastructure investments translate to semiconductor demand across cloud and enterprise sectors.