Nvidia reported another quarter of very strong sales. The company posted $46.7 billion in revenue for the quarter. That was up 56 percent compared with the same quarter last year. The data center business continued to power results. Data center revenue reached $41.1 billion in the quarter.
Revenue and profit
Nvidia said net income rose sharply. The company reported net income of about $26.4 billion. That represented large growth year over year. The Blackwell family of chips played a central role in the quarter. Nvidia said Blackwell contributed a very large portion of data center sales. Some reporting places that Blackwell accounted for roughly $27 billion of those sales.
Blackwell performance
Blackwell sales rose sequentially during the quarter. The company said Blackwell data center revenue grew about 17 percent from the previous quarter. Nvidia highlighted work done with model builders and cloud partners. The firm noted support for OpenAI model launches and said optimized systems reached high inference throughput on Blackwell GB200 NVL72 racks. Nvidia pointed to performance that reached 1.5 million tokens per second on a GB200 NVL72 system when running new open models.
China and H20
Trade tensions and regulatory friction limited Nvidia activity in China. The company said it shipped no H20 devices into Chinese customers in the past quarter. Nvidia has also paused some H20 production while regulatory and commercial conditions remain uncertain. Reuters and other outlets reported that the company instructed some suppliers to halt China centered work on the H20. These developments created a clear source of near-term uncertainty.
Policy and market effects
A high-profile agreement now ties some China sales to a government revenue sharing arrangement of about 15 percent. Such an arrangement has attracted both legal and political review and complexity to operations. The approach has attracted constitutional doubt on the part of commentators and has been discussed by legal scholars regarding the long-term legality and consequences of the approach. Nvidia alleged that doubt and absence of formal regulatory framework were some of the causes of slower shipments.
Guidance and outlook
Nvidia set an ambitious revenue target for the next quarter. The company forecast about $54 billion in revenue for the third quarter with a possible variance of two percent up or down. The guidance excludes any H20 shipments to China. That number will be watched closely by investors and by customers who are planning large AI infrastructure builds.
Customer mix and demand
A large portion of data center sales came from cloud and hyperscale providers. Nvidia said large cloud customers bought Blackwell systems for model training and inference. The company also reported strong demand in so called sovereign AI projects and in enterprise use cases. Network and systems components tied to Blackwell deployments added to revenue as companies built full stacks around the new chips.
Margins and capital returns
Nvidia showed robust margins on AI hardware sales. The firm also announced a large share buyback program. Investors absorbed the news and then focused on the China question. Nvidia stock moved in aftermarket trading as analysts assessed whether the China gap would reduce growth in coming quarters. The company remains profitable and it continues to generate large free cash flow.
What this means for customers Large model builders will keep pushing demand for GPUs and for high performance racks. Customers that count on Nvidia gear must weigh the China constraint when they plan capacity and procurement cycles. Some organizations may diversify supply chains or seek alternative suppliers for parts of their stacks. Others will accelerate orders to secure capacity while Blackwell supplies remain available