Nvidia reported $46.7 billion in Q2 revenue, surpassing consensus and beating EPS expectations, and issued Q3 guidance above Wall Street forecasts. Despite those results, NVDA stock fell up to 5% after hours and about 1% premarket due to a $41.1 billion data center revenue figure versus $41.2 billion expected. The small data center shortfall overshadowed otherwise strong performance. U.S. export controls and geopolitical tensions have constrained shipments of H20 chips to China, contributing to a $5.5 billion inventory writedown in Q1. Investors view China as a key growth driver, and absent sales have fueled a negative outlook.
Nvidia ( NASDAQ:NVDA) released its second-quarter 2026 earnings report yesterday, delivering a performance that, by most metrics, was nothing short of extraordinary. The artificial intelligence (AI) chipmaker reported $46.7 billion in revenue, surpassing consensus estimates and beating earnings per share expectations, while also issuing Q3 guidance that exceeded Wall Street's forecasts. However, the market's reaction was surprisingly tepid, with NVDA's stock dropping as much as 5% in after-hours trading and remaining down about 1% premarket.
The culprit? A slight miss in the data center segment, where revenue came in at $41.1 billion against expectations of $41.2 billion. This narrow shortfall in the high-flying data center business - a cornerstone of Nvidia's AI dominance - overshadowed the broader success. Yet, buried in the report is a shocking number the market seems to be missing entirely.
Collection
[
|
...
]