Nvidia reported a Q2 FY2026 revenue of $46.7 billion, exceeding expectations, despite stock declines attributed to concerns over slower AI growth.
Nvidia's Q2 Revenue
Nvidia's revenue for Q2 FY2026 reached $46.7 billion, surpassing market predictions. This result was driven by a strong performance in the data center segment and the popularity of Blackwell chips among cloud service providers. CEO Jensen Huang characterized Blackwell as a breakthrough in the AI race.
Stock Buyback Plan
Nvidia also approved a $60 billion share repurchase program, highlighting confidence in its long-term growth. However, moderate revenue guidance for Q3 raised concerns about potential slowdown in AI-related capital expenditures, despite overall strong sales figures.
Market Reactions and Investor Concerns
Investor concerns focus on the potential slowdown in AI spending, leaving many apprehensive about Nvidia's ability to sustain accelerated earnings. This sentiment was reflected in the after-hours market with a 5% decline in Nvidia's stock.
While Nvidia's financial results show strength, market concerns about the future growth of AI may lead to a recalibration of investment expectations in this sector.
