Nvidia’s earnings are top expectations, but growth is slowing, weighing on its stock

Key recommendations

• Nvidia reported second-quarter revenue and earnings that beat analysts’ estimates, though the pace of growth slowed. Shares fell in extended trading Wednesday after the release.

• The chipmaker’s revenue and net income more than doubled from a year ago as data center sales hit a new record.

• Nvidia CEO Jensen Huang said Blackwell samples are being shipped to partners and customers, but did not provide additional information amid reports of delays.

Nvidia (NVDA) reported better-than-expected revenue and earnings for the second quarter of fiscal 2025, although the pace of growth slowed. Shares fell in extended trading Wednesday after the release.

The chipmaker reported revenue of $30 billion in the second quarter, more than double the year-ago period. Net income for the fiscal second quarter was $16.6 billion, also more than double its figure a year earlier. Both figures beat analysts’ expectations compiled by Visible Alpha, although growth slowed from previous quarters.

Data center revenue rises to record high on demand for AI

Data center revenue for the fiscal second quarter was $26.3 billion, setting a new record and more than double the previous year.

“Demand for Hopper remains strong and the anticipation for Blackwell is incredible,” said Nvidia CEO Jensen Huang, adding that the chipmaker “delivered record revenue as global data centers are in full swing to modernize the entire computing with accelerated computing and generative AI. “

Nvidia says its plans for Blackwell are still on track

After concerns over reported delays to Nvidia’s Blackwell AI chip sent Nvidia’s stock price tumbling earlier this month, the chipmaker said on Wednesday that it began shipping some samples of its Blackwell chip in the second quarter and expects to “deliver several billion dollars in Blackwell revenue” later this month. fourth quarter as production ramps up.

The chipmaker gave a stronger-than-expected outlook for the third quarter of fiscal 2025, with revenue expected to be around $32.5 billion.

Nvidia’s board also approved a new $50 billion share buyback plan. The company said it had $7.5 billion in previously authorized buybacks at the end of the first half.

Despite Nvidia’s earnings and revenue, the chip maker’s shares fell more than 5 percent to $118.40 in extended trading Wednesday after the company’s earnings release.

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