Nvidia’s 122% Revenue Growth Fails to Impress as Stock Plunges 8%
Nvidia for the second quarter 2025 reported revenue of $30 billion, grew 122% on a year-over-year (YoY) basis highlighting that the surge in artificial intelligence investment remains strong.
On a segmental basis, Nvidia's data center business, which includes its AI processors, saw a 154% year-over-year revenue increase to $26.3 billion, making up 88% of total sales and surpassing StreetAccount's projection of $25.24 billion.
Previously, gaming was Nvidia's main focus, but with the rise of the data center segment, gaming revenue grew by 16% to $2.9 billion, partly due to increased PC gaming card shipments and GeForce RTX 40 Series GPUs "game console SOCs," with Nvidia supplying chips for Nintendo consoles.
Additionally, Nvidia's professional visualisation business, catering to high-end graphic designers, grew 20%, bringing in $454 million. The growth was fueled by the ongoing adoption of RTX GPU workstations built on Nvidia's Ada architecture.
Automotive and robotics revenue stood at $346 million up by 37% from the previous year driven by demand for AI Cockpit solutions and self-driving platforms.
Moreover, Nvidia's gross margin slipped slightly to 75.1% from 78.4% in the prior period, though it's still an improvement from 70.1% a year ago. The company expects gross margins to remain in the "mid-70% range" for the full year.
Nvidia's net income more than doubled in the quarter, reaching $16.6 billion, or 67 cents per share, compared to $6.18 billion, or 25 cents per share, in the same period last year.
Not all of Nvidia's revenue came from AI chips. The company reported on 28th August that $3.7 billion of its revenue came from networking products. Much of Nvidia's business is focused on a few key cloud service providers and consumer internet companies, including Microsoft, Alphabet, Meta, and Tesla. Its chips, like the H100 and H200, power the majority of generative AI applications, including OpenAI's ChatGPT.
Nvidia stated that it anticipates third-quarter revenue of approximately $32.5 billion, which would represent an 80% increase compared to the same period last year.
Moreover, the company expects GAAP and non-GAAP gross margins to be 74.4% and 75.0%, respectively, plus or minus 50 basis points. For the full year, gross margins are expected to be in the mid-70% range.
On 28th August, Nvidia’s shares fell as much as 8% in aftermarket trade.
Visit Us: https://graniteshares.com/institutional/uk/en-uk/
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Sources:
1. Nvidia
2. CFO Commentry
3. CNBC
On a segmental basis, Nvidia's data center business, which includes its AI processors, saw a 154% year-over-year revenue increase to $26.3 billion, making up 88% of total sales and surpassing StreetAccount's projection of $25.24 billion.
Previously, gaming was Nvidia's main focus, but with the rise of the data center segment, gaming revenue grew by 16% to $2.9 billion, partly due to increased PC gaming card shipments and GeForce RTX 40 Series GPUs "game console SOCs," with Nvidia supplying chips for Nintendo consoles.
Additionally, Nvidia's professional visualisation business, catering to high-end graphic designers, grew 20%, bringing in $454 million. The growth was fueled by the ongoing adoption of RTX GPU workstations built on Nvidia's Ada architecture.
Automotive and robotics revenue stood at $346 million up by 37% from the previous year driven by demand for AI Cockpit solutions and self-driving platforms.
Moreover, Nvidia's gross margin slipped slightly to 75.1% from 78.4% in the prior period, though it's still an improvement from 70.1% a year ago. The company expects gross margins to remain in the "mid-70% range" for the full year.
Nvidia's net income more than doubled in the quarter, reaching $16.6 billion, or 67 cents per share, compared to $6.18 billion, or 25 cents per share, in the same period last year.
Not all of Nvidia's revenue came from AI chips. The company reported on 28th August that $3.7 billion of its revenue came from networking products. Much of Nvidia's business is focused on a few key cloud service providers and consumer internet companies, including Microsoft, Alphabet, Meta, and Tesla. Its chips, like the H100 and H200, power the majority of generative AI applications, including OpenAI's ChatGPT.
Nvidia stated that it anticipates third-quarter revenue of approximately $32.5 billion, which would represent an 80% increase compared to the same period last year.
Moreover, the company expects GAAP and non-GAAP gross margins to be 74.4% and 75.0%, respectively, plus or minus 50 basis points. For the full year, gross margins are expected to be in the mid-70% range.
On 28th August, Nvidia’s shares fell as much as 8% in aftermarket trade.
Visit Us: https://graniteshares.com/institutional/uk/en-uk/
Capital at Risk | Sophisticated Investors Only
Sources:
1. Nvidia
2. CFO Commentry
3. CNBC
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