Nvidia Q2 Earnings Beat Expectations, Stock Slides on China Uncertainty

August 28, 2025 - Nvidia Corporation (NASDAQ: NVDA) reported blockbuster second-quarter results Wednesday after the closing bell, posting better-than-expected revenue and earnings but seeing its stock tumble amid lingering uncertainty over China chip sales.

Nvidia delivered revenue of $46.74 billion for the quarter ended July 27, representing a 56 percent year-over-year increase that topped Wall Street’s $46.52 billion consensus. Net income rose 40.8 percent to $26.4 billion, while diluted earnings per share came in at $1.08, exceeding the expected $1.02.

Despite the upside surprise, shares fell about 4 percent in extended trading to approximately $175 as investors grappled with geopolitical headwinds and muted guidance for chip shipments to China. The company confirmed it generated no sales of its H20 AI processors in China during the quarter while awaiting U.S. export-license approvals, a factor it omitted from its third-quarter revenue outlook.

Looking ahead, Nvidia projected third-quarter revenue of roughly $54 billion, plus or minus 2 percent, a range that excludes any potential H20 sales to China and sits slightly above analysts’ forecasts of $53.8 billion. Management reaffirmed expectations for continued robust data-center demand fueled by generative AI adoption, though noted growth could accelerate further once regulatory clarity on China exports is achieved.

CEO Jensen Huang and CFO Colette Kress emphasized Nvidia’s leadership in AI infrastructure and reiterated plans for aggressive capital returns, including a newly approved $60 billion share buyback program. Though margins remain strong, the company cautioned that U.S.-China trade policy will continue to shape near-term China sales and overall growth trajectory.