Nvidia Beats Expectations but Faces Slowdown Concerns

On August 28, 2025, Nvidia reported record financial results for the second quarter of the year, exceeding analysts' expectations on both revenue and profit. The company posted revenue of $46.7 billion, a 56% increase compared to the same period last year. Adjusted earnings per share reached $1.05, beating estimates by $0.04.

However, Nvidia's crucial data center division, which had extremely high expectations from investors, narrowly missed Wall Street forecasts. The reported figure for the data center segment was $41.1 billion, a 56% increase year-over-year but just below the consensus estimate of $41.3 billion. This raised concerns among investors about whether the pace of AI-driven growth is peaking or facing headwinds, leading to a roughly 3% drop in Nvidia's shares after the report.

Despite the slight miss, Nvidia remains the world's most valuable company, with a market capitalization above $4 trillion, reflecting investor optimism about its dominant role in AI infrastructure. The company's Blackwell chip line remains in high demand, though CEO Jensen Huang acknowledged production capacity constraints rather than lack of customer interest.

Nvidia also announced an aggressive $60 billion stock repurchase program, underscoring management's confidence in continued growth and cash generation. The company projected third-quarter revenue of $54 billion, plus or minus 2%, not assuming any future sales of its H20 AI chips to China, which have been affected by recent export restrictions and U.S. policy shifts.