Nvidia Q2 Earnings Beat Estimates but Stock Slides Amid China Export Constraints

Nvidia delivered a mixed earnings report for Q2 2025, with revenue soaring 56% year-over-year to $46.7 billion, surpassing Wall Street expectations. The chipmaker's data center segment generated $41.1 billion, narrowly missing analyst projections of $41.34 billion. Despite the strong performance, shares fell 3.3% in after-hours trading as investors digested the complete absence of H20 processor sales to China due to U.S. export controls.

The company's gross margins expanded to 72%, up 20% quarter-over-quarter, while net income jumped 59% to $26.4 billion. Nvidia's board authorized an additional $60 billion for share repurchases, signaling confidence in continued growth. Notably, the earnings guidance for Q3 excluded any potential China sales, reflecting ongoing geopolitical uncertainties in key semiconductor markets.