Quick overview

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Nvidia’s Fiscal 2Q data center revenue is marginally below expectations. We’ll break that down soon. Compared to estimates of $53.46 billion, the sales outlook of $54 billion plus or minus 2 percent is uncertain.  The tech giant’s stocks are rapidly declining and are currently down almost 4%.

NVIDIA’s data center division alone outpaces all other chip companies. It is the world’s most valuable company with a market valuation of roughly $4.43 trillion. It became the only chipmaker ever to be valued so highly just two years ago when it crossed the $1 threshold for the first time.

Nvidia’s data center business is still firmly rooted in the historically large-scale deployment of artificial intelligence infrastructure, according to the company’s second-quarter 2026 results. According to Nvidia, the company’s overall revenue increased by 56% during the quarter.  Nvidia indicated that it anticipated receiving licenses to export the H20 chip to China, a product that the company claimed cost it $4.05 billion in write-downs and that, had it been commercially available at the time, could have increased sales by $8 billion in the second quarter.

The second quarter did not see any H20 sales to clients in China. It’s interesting to note that the company claims to have “benefited from a $180 million release of previously reserved H20 inventory, from approximately $650 million in unrestricted H20 sales to a customer outside of China.

Shares of other hardware stocks with an AI component are also declining in after-hours trading in response to Nvidia’s results. CoreWeave, SMCI, Palantir, and Dell are all down roughly 3%, 2%, and 0.8%, respectively.

Nvidia’s gaming division reported $4.33 billion in sales, a 49% increase from the same period last year. This division was Nvidia’s largest before the AI boom boosted data center sales. During the quarter, Nvidia announced that some of its OpenAI models could now run on personal computers thanks to updates to its gaming GPUs. With $601 million in sales for the quarter, representing a 32% year-over-year growth, the company’s robotics division—highlighted by management as a growth area—remains a small part of Nvidia’s overall business.