NVIDIA's Q2 Revenue Soars 122%: Data Center Business Booms, Blackwell GPU Poised for Launch

NVIDIA's Q2 Revenue Soars 122%: Data Center Business Booms, Blackwell GPU Poised for LaunchOn Wednesday, August 29, NVIDIA released its Q2 2025 financial results for the period ending July 28. The report revealed a stellar quarter with revenue hitting $30 billion, representing a 122% year-on-year increase and surpassing analyst expectations of $28

NVIDIA's Q2 Revenue Soars 122%: Data Center Business Booms, Blackwell GPU Poised for Launch

On Wednesday, August 29, NVIDIA released its Q2 2025 financial results for the period ending July 28. The report revealed a stellar quarter with revenue hitting $30 billion, representing a 122% year-on-year increase and surpassing analyst expectations of $28.7 billion. Net income reached $16.6 billion, a 168% surge year-over-year, while diluted earnings per share climbed to $0.67, marking a 168% increase compared to the previous year and exceeding analysts' forecast of $0.64.

Following the release, CEO Jensen Huang, CFO Colette Kress, and other executives participated in a conference call with analysts, discussing the results and addressing their questions.

Kress highlighted the record-breaking quarter, stating that NVIDIA's revenue of $30 billion represents a 15% sequential and 122% year-over-year growth, significantly surpassing the anticipated $28.7 billion. The key driver behind this impressive performance was the robust growth in the data center business, which generated $26.3 billion in revenue, setting a new record while experiencing a 16% sequential and 154% year-over-year increase. This surge was fueled by strong demand for NVIDIA's Hopper GPU computing and networking platforms. Computing revenue surged by over 2.5 times, while networking revenue doubled.

Cloud service providers contributed approximately 45% of data center revenue, while over 50% originated from consumer internet and enterprise sectors. The continuous demand for Hopper GPUs propelled business growth, with customers actively preparing for the adoption of the next-generation Blackwell products. These next-generation models will require 10 to 20 times the computational power of current models to handle larger datasets, and this trend is expected to persist. NVIDIA sees a diverse and widespread demand originating from leading model developers, consumer internet services, and thousands of companies and startups. These clients leverage NVIDIA's technology and ecosystem to develop generative AI applications across various domains, including consumer, advertising, education, enterprise, healthcare, and robotics.

NVIDIA's H200 platform commenced mass production in Q2, delivering to major cloud service providers, consumer internet companies, and enterprises. During the quarter, NVIDIA's data center business revenue in China witnessed sequential growth, becoming a significant contributor to the segment's overall performance. However, despite this growth, China's revenue share remains below pre-export restriction levels. NVIDIA anticipates fierce competition in the Chinese market.

Demand for Blackwell GPUs is strong, with NVIDIA implementing improvements to enhance production. Production expansion plans are scheduled to begin in Q4 2025 and continue into fiscal year 2026. NVIDIA expects significant Blackwell shipments in Q4, generating billions of dollars in revenue. While supply and availability have improved due to increased shipments in the second half of fiscal year 2025, demand continues to outpace supply, a situation the company expects to persist into next year.

The rise of sovereign AI, where countries are increasingly recognizing the strategic importance of AI expertise and infrastructure for societal advancement and industrial upgrades, continues to present significant opportunities. NVIDIA anticipates substantial revenue growth, reaching billions of dollars, from the sovereign AI sector in this fiscal year. Simultaneously, the wave of enterprise AI is gaining momentum, with numerous companies driving continuous sequential revenue growth. NVIDIA collaborates with numerous Fortune 100 companies to advance cross-industry, cross-regional AI innovation projects.

Among the growth drivers, the automotive sector stands out, acting as a key engine for NVIDIA's quarterly growth. Major auto manufacturers are accelerating their investments in autonomous vehicle technology and deeply integrating AI into their data centers. This trend not only directly contributes billions of dollars in revenue but also signals significant growth potential as the demand for computational power from next-generation autonomous driving models skyrockets.

In terms of gaming and AIPC, the gaming segment showcased robust market vitality, generating $2.88 billion in revenue in Q2, marking a 9% sequential and 16% year-over-year increase. Both gaming console and laptop markets witnessed sequential growth, with sustained demand and healthy channel inventory levels. In the professional visualization sector, revenue reached $454 million, representing a 6% sequential and 20% year-over-year increase. This growth stems from the deep integration of AI with graphics technology, particularly in applications like model optimization and Omniverse workloads. Additionally, the automotive and robotics segment delivered $346 million in revenue, registering a 5% sequential and 37% year-over-year growth. This surge is attributed to robust demand from new customers for autonomous driving platforms and widespread adoption of AI-powered cockpit solutions.

During the Q&A session, Jensen Huang confirmed that the mask modifications for Blackwell GPUs have been completed and that NVIDIA is fully committed to functional sample testing of Grace Blackwell across various system configurations. Mass shipments are expected to begin in Q4, generating billions of dollars in revenue.

In response to market discussions regarding customer return on investment, Huang emphasized that investors who invest in NVIDIA infrastructure experience immediate and significant returns, making it the optimal ROI-based infrastructure computing investment. The rapid advancement of generative AI, the reduction in data processing costs, and cost savings from applications like recommendation systems will lead to swift returns on investment in NVIDIA infrastructure.

Regarding the ramp-up of Blackwell production, NVIDIA has thoroughly assessed potential impacts and remains confident in its future, projecting continued significant growth in the data center business. Blackwell is poised to revolutionize the industry landscape and drive this trend for years to come.

Kress noted that Hopper will continue to experience growth in the second half of the year, with a notable performance surge expected to begin in Q3 and extend into Q4. Blackwell's ramp-up in Q4 will further fuel NVIDIA's revenue growth.