Nvidia increases revenue by 56% yearly, and CEO dismisses fall in demand

Nvidia presented the financial statements for the second quarter (Q2) of the fiscal year 2026, revealing an increase in most of the major indicators. Revenue reached another record high, hitting $46.7 billion, 6% up from the previous quarter, but representing a 56% increase year over year.

Income for the quarter was $26.4 billion, up 41% from Q1 and 59% in a year-to-year comparison. The gross margin showed an improvement, reaching 72.4% in the second quarter, an increase of 11.9 points from Q1; however, it is still not at the same level as Q2 of the fiscal year 2025 (75.1%)

The results show a “cooling” effect on the quarterly variation of revenue, as previously the company showed a double-digit quarterly variation. The data center business continues to be the most representative one in revenue, with $41.1 billion during Q2, up 5% from the previous quarter. A push in demand for accelerated computing platforms for large language models, recommendation engines, and generative and agentic AI applications explained the results. 

“We continue to ramp our Blackwell architecture, which grew 17% sequentially, including our newest architecture, Blackwell Ultra,” said the company in the CFO commentary.

The company recognised an impact derived from the limitations of exporting H20 chips to China, saying that there was a reduction of $4 billion in sales of this chip when compared to Q1. 

For the third quarter, the company is expecting a revenue of $54 billion, still considering no shipments of the H20 chip to China. Jensen Huang, CEO of Nvidia, said the company would be willing to share a cut of the sales of the Blackwell chip from China with the US government in exchange for an export license to the Asian market. 

Following the presentation of the financial statements, Huang commented that the industry is going to keep expanding and dismissed concerns about the end of the AI boom, and the consequently flat demand for chips. Huand said “we see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade."