NVIDIA Forecasts $54 Billion Revenue for Q3 FY2026, Shares Drop 5%
Despite stronger-than-expected second-quarter earnings, Nvidia’s lack of H20 chip sales to China and growing geopolitical risks led to a 3.4% drop in after-hours trading.
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Summary
Nvidia posted impressive Q2 2026 results, with revenue reaching $46.7 billion, exceeding market expectations. However, the company’s disclosure of no H20 chip sales to China during the period, following tightening U.S. export restrictions, caused shares to drop by 3.4%. Nvidia’s Q3 forecast of $54 billion in revenue adds to investor concerns regarding slowing AI spending and geopolitical risks. Data center sales grew 17%, reflecting strong AI demand, but the geopolitical backdrop remains a key concern for investors.
Terms & Concepts
- H20 Chips: High-performance AI chips designed by Nvidia, initially intended for the Chinese market but diverted due to updated U.S. export controls.
- Blackwell Architecture: Nvidia's next-generation architecture for AI-focused data centers, promising high computational power for machine learning and related applications.