Earnings and revenue at NVIDIA were higher than expected on Wednesday, and the company stated that sales will grow more than 50 percent this quarter, which indicates to Wall Street that the demand for building artificial intelligence infrastructure is far from exhausted.
The stock, which increased 35% this year following a nearly threefold rise in 2024, declined in extended trading since data center revenue underperformed expectations in the second straight period.
NVIDIA forecast revenue this quarter of between 54 billion with a variation of 2 percent, but this figure does not take into consideration any H20 sales to China. Analysts projected a revenue of 53.1 billion on the part of LSEG. The second quarter results of the company in 2026 validated that NVIDIA data center business is stuck in the global AI buildout.
NVIDIA finance chief Colette Kress told analysts on an earnings call that the company predicted between $3 and $4 trillion in AI infrastructure investment by the end of the decade.
In total, the company revenue increased by 56 percent in April compared to 30.04 billion in April of the previous year, NVIDIA announced. No year-over-year revenue has now passed 50 percent in nine consecutive quarters, back to mid 2023, when the generative AI craze began to reflect in the NVIDIA results.
NVIDIA reported selling none of its H20 chips to China in the quarter, but it was helped by the sale of the inventory of H20 chips valued at $180 million to a non-Chinese customer in the quarter.
Net income has grown 59 percent to a new record of $26.42 billion or 1.05 per share as compared to 16.6 billion or 67 cents per share in the previous year.
The division increased revenue 56 per cent over the same period a year ago to $41.1 billion, compared with a Street account estimate of $41.34 billion in the quarter.
NVIDIA data center sales of data center computers, or the NVIDIA graphics cards, dropped 1 percent in the first quarter due to a reduction in H20 sales, according to Kress in a statement. Kress indicated that data center sales of NVIDIA of networking parts required to construct their more complex systems totaled $7.3 billion, nearly twice as much as in the previous year.
NVIDIA reported an increase of Blackwell sales in the first quarter by 17 percent. In May NVIDIA announced that it’s new product range achieved sales of 27 billion dollars and were contributing circa 70 percent of the date center earnings.
The NVIDIA gaming segment has had sales of 4.3 billion, which is 49 percent higher than last year. The division was once the largest at NVIDIA prior to the AI bloom accelerating the sale of the data centers.
