Computer chip producer Nvidia announced its fiscal results for the second quarter of its 2026 fiscal year, surpassing Wall Street predictions for revenue and earnings per share (EPS).
Nvidia revealed Q2 revenue of $46.7 billion, an increase of 6% from the prior quarter, along with over $26.4 billion in net profit. The firm’s revenue grew by 56% year-on-year, as stated in Wednesday’s announcement.
The organization reported an EPS of $1.08, adhering to GAAP standards, and $1.05 EPS for non-GAAP. Nvidia also achieved a profit margin of approximately 72.4% for the quarter.
Nvidia’s shares dropped by roughly 3.3% in after-hours transactions on Wednesday.
Nvidia stands as the largest publicly traded company globally, boasting a market capitalization exceeding $4.4 trillion at present. The firm leads in the production of artificial intelligence and computing chips, and has also attained geo-strategic significance for the US government.
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Nvidia reports no H20 sales to China
Nvidia addressed apprehensions regarding its Chinese operations in its latest earnings report, asserting that sales of its H20 processor had not occurred in the nation. “There were no H20 sales to customers located in China during the second quarter,” the company stated.
The H20 processor is a less powerful variant of Nvidia’s H100 chip designed for the Chinese market in alignment with current US regulations concerning the export of high-performance computing chips utilized in AI applications.
In January, the administration of US President Donald Trump announced it was seeking to tighten export regulations on Nvidia H20 transactions with China due to “national security” issues.
The Trump administration acted upon this and enforced rigorous export regulations, which included licenses and fees amounting to about $5.5 billion, effectively halting H20 chips intended for China.
However, the administration reversed its position in August, permitting H20 chip sales to China to recommence on the stipulation that Nvidia allocates 15% of the revenue from these sales to the US government.
