- Nvidia (NDAQ:NVDA) delivered fiscal results for the most recent quarter, surpassing expectations on the top and bottom lines
- In its fiscal Q2 2025 results, the top name in AI chip design and software reported record quarterly revenue of US$30 billion, exceeding analyst estimates of US$28.8 billion
- Nvidia’s primary revenue driver, the data centre business generated US$26.3 billion in revenue, beating Wall Street’s forecast of US$25 billion
- Nvidia stock last traded at US$125.61 per share
Nvidia (NDAQ:NVDA) delivered fiscal results for the most recent quarter, surpassing expectations on the top and bottom lines.
In its fiscal Q2 2025 results, the top name in AI chip design and software reported adjusted earnings per share (EPS) of $0.68 on record quarterly revenue of US$30 billion, exceeding analyst estimates of $0.64 EPS and US$28.8 billion in revenue. This marks a significant 122 per cent year-over-year increase in revenue, while earnings soared by 168 percent compared with the same quarter last year.
Data centre
For the second quarter ended July 28, 2024, Nvidia’s data centre business generated US$26.3 billion in revenue, beating Wall Street’s forecast of US$25 billion. This segment experienced 154 per cent growth compared with the same period last year, when it brought in US$10.3 billion. Nvidia’s success in the data centre market points to the growing demand for its AI-powered hardware and software solutions, which are becoming increasingly vital for businesses looking to utilize the power of AI.
Nvidia also introduced a new array of Blackwell systems featuring Nvidia Grace CPUs, networking, and infrastructure from top manufacturers such as GIGABYTE, QCT and Wiwynn, further solidifying its place at the front of the pack in AI technology.
Gaming revenue
While the data centre business has become Nvidia’s primary revenue driver, the company’s gaming division, which once held that title, also showed positive momentum.
The gaming segment reported US$2.8 billion in revenue for the quarter, representing a 16 per cent increase year-over-year. Nvidia’s continued innovation in gaming was highlighted by the announcement of Nvidia ACE, a suite of generative AI technologies designed to bring digital humans to life. This includes the new Nvidia Nemotron-4 4B, a small language model for on-device inference, which is now available in early access for RTX AI PCs.
Automotive revs up
In the automotive sector, Nvidia posted Q2 revenue of US$346 million, up 5 per cent from the previous quarter and 37 per cent from the same period last year. The company revealed that leading robotics developers, including BYD Electronics, Siemens and Teradyne Robotics, are adopting Nvidia’s Isaac robotics platform for research and development as well as production.
Outlook
Looking ahead, Nvidia provided strong guidance for its fiscal Q3, forecasting revenue of US$32.5 billion, plus or minus 2 per cent. This outlook surpasses analysts’ expectations of US$31.9 billion, signalling continued confidence in the company’s growth trajectory.
Leadership commentary
“Hopper demand remains strong, and the anticipation for Blackwell is incredible,” Jensen Huang, Nvidia’s founder and CEO said about its current generation and next-generation chips in a news release on these results. “Nvidia achieved record revenues as global data centres are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”
Market reaction
Despite the robust earnings report and upbeat guidance, Nvidia’s stock experienced a pullback in pre-market trading on Thursday, dropping a little more than 3 per cent. The shares fell as much as 6 per cent in the immediate reaction to the numbers, reflecting a mix of profit-taking and cautious sentiment among investors.
Nvidia’s dominance in the AI market, where it controls between 80 per cent to 95 per cent of the market according to Reuters, positions the company as a key player in the technology industry’s ongoing transformation. As the company continues to innovate and expand its product offerings, investors will be closely watching how Nvidia navigates the rapidly evolving landscape of AI and high-performance computing.
About Nvidia Corp.
Nvidia Corp. accelerates computing to help solve computational problems. The company has two segments. The computer and networking segment includes its data centre accelerated computing platform, networking, automotive AI cockpit, autonomous driving development agreements and autonomous vehicle solutions, as well as electric vehicle computing platforms, Jetson for robotics and other embedded platforms, along with Nvidia AI Enterprise and other software and cryptocurrency mining processors. The graphics segment includes GeForce GPUs for gaming and personal computers.
Nvidia stock (NDAQ:NVDA) last traded at US$125.61 per share and has risen 157.49 per cent since this time last year.
Join the discussion: Find out what everybody’s saying about this stock on the Nvidia Corp. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo: Nvidia Corp.)