Nvidia reported record quarterly results that topped Wall Street expectations, but shares fell in after-hours trading as its closely watched data center revenue came in just shy of consensus, pressuring chip peers amid broader anxiety over an AI bubble.
Earnings beat, narrow miss in data centers
According to Fortune, Nvidia posted second-quarter revenue of $46.7 billion, up 56% year over year, with adjusted earnings per share of $1.05, beating estimates by $0.04. The data center segment generated $41.1 billion, also up 56% annually but just below Wall Street’s $41.3 billion forecast, prompting a roughly 3% decline in the stock after the report. Fortune noted investors were attuned to signs that the pace of AI-driven growth may be slowing, as the quarter marked the smallest percentage sales gain in more than two years and guidance continued to signal moderating growth.
Nvidia projected third-quarter revenue of $54 billion, plus or minus 2%, and said the outlook does not assume any future sales of its H20 AI chips to China given export restrictions and U.S. policy shifts. The company also unveiled a $60 billion stock repurchase program. Fortune reported that CEO Jensen Huang described demand for the Blackwell line as strong, while pointing to production capacity constraints rather than weak interest.
Market reaction and AI sentiment
Chip stocks slip alongside Nvidia
Fortune wrote that despite remaining the world’s most valuable company with a market cap above $4 trillion, Nvidia’s after-hours drop weighed on several semiconductor names. Advanced Micro Devices fell 1.3% after the print, Micron Technology declined 1%, Taiwan Semiconductor Manufacturing shed 1.7%, Broadcom dipped 1.2%, and Intel slipped 0.3%.
The article added that tech giants including Microsoft, Meta, Amazon, and Alphabet continue to invest in Nvidia-powered infrastructure, sustaining high demand for GPUs. Still, markets have been jittery amid increasing talk of an AI bubble. Fortune cited commentary from OpenAI CEO Sam Altman and referenced reports that included an MIT finding that 95% of corporate generative AI pilots were failing to deliver returns, dynamics that have recently pressured other AI-linked stocks.
Fortune also noted Nvidia remains the top-performing mega-cap tech stock in 2025, up more than 30% year to date, with most analysts maintaining buy ratings based on its large AI chip share and upcoming product cycles.
