In the stock market these days, it is never “What have you done for me lately?”, or even “What will you do for me next time?”, but “How much will you explode my own sense of current reality and future possibility so thoroughly that I can’t help but be impressed?”
With its fiscal second quarter 2025 earnings report, Nvidia showed record quarterly revenue of $30 billion, up 15% from fiscal Q1 2025 and up 122% from a year ago. That figure blew past the company's previous outlook for the quarter, which had suggested $28 billion in revenue. It also included record quarterly Data Center revenue of $26.3 billion, up 16% sequential and up 154% from a year ago. The company also said sales will continue to grow next quarter, with $32.5 billion, plus or minus 2%, in revenue expected for fiscal Q3 2025.
But it just was not enough. Triple-digit year-over-year revenue growth was not enough. A positive outlook was not enough. NVDA stock took a nosedive immediately after the earnings report crossed the wire, dropping from its close of $125.61 to around $116 per share at one point. After-hours disasters do not always continue in the trading days to come, but the flood of negative reaction on social media immediately following the report was palpable, and reinforced just how big a deal Nvidia earnings have become for economic observers closely attuned to any signs of a recession (as big a deal as U.S. job data, according to the Financial Times).
The main thing the boo-birds were homing in on was that sales outlook. While Nvidia’s guidance was above the average estimate for its next quarter–reportedly $31.9 billion–it fell short of the highest analyst estimates of well above $37 billion.
It remains to be seen how all the stock market drama will play out in the days to come, but what is most clear from Nvidia’s quarterly earnings report is that AI demand continues to grow. Nvidia’s latest quarterly performance only seems to confirm what earlier reports from TSMC and AMD suggested in that regard.
“Hopper demand remains strong, and the anticipation for Blackwell is incredible,” said Jensen Huang, founder and CEO of Nvidia said in a statement. “NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”
“Blackwell samples are shipping to our partners and customers,” he added, amid reports that the company is having challenges “reaching high volume production” for Blackwell.
Nvidia also showed revenue growth in other areas of its business, as it reported fiscal second quarter Gaming unit revenue of $2.9 billion, which represented a 9% increase from the previous quarter and a 16% advance from fiscal Q2 2024.
Also, Automotive revenue reached $346 million in fiscal Q2 2025, up 5% from the previous quarter and jumping 37% from a year ago. In the company’s Professional Virtualization business, which includes the company’s Omniverse platform, NIM microservices for AI, and more, fiscal Q2 2025 revenue was $454 million, up 6% from the previous quarter and up 20% from a year ago.