Nvidia earnings call: Why chipmaker's stock price is falling despite a positive Q2 report

Nvidia announced financial results for Q2 for the fiscal year 2026 on Wednesday. The chipmaker revealed that its revenue hit $46.7 billion, a 6% increase from the prior quarter and a 56% jump from the same period last year. The surge was driven by a 17% sequential rise in Blackwell Data Center revenue, reaching $41.1 billion, up 56% year-over-year. The Nvidia logo is displayed on a building at Nvidia headquarters on August 27, 2025 in Santa Clara(Getty Images via AFP) CEO Jensen Huang hailed Blackwell as ‘the AI platform the world has been waiting for’, noting its extraordinary demand and full-speed production of the Blackwell Ultra, positioning it at the heart of the AI race. “Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap — production of Blackwell Ultra is ramping at full speed, and demand is extraordinary,” Huang noted. “NVIDIA NVLink rack-scale computing is revolutionary, arriving just in time as reasoning AI models drive orders-of-magnitude increases in training and inference performance. The AI race is on, and Blackwell is the platform at its center.” However, Nvidia's shares dipped despite a positive earnings report. In after-hours trading, the stock sank more than 2% to 176.37. Meanwhile, the S&P 500 was up 0.2%. The Dow Jones Industrial Average rose 127 points, or 0.3%, as of 1:20 PM ET The Nasdaq composite inched up 0.1%. The shares are likely to experience a ‘modest 3-4% move post-earnings’, Mizuho Securities trading-desk analyst Jordan Klein said, as per Investor's Business Daily. "Any dip over 5% gets bought quickly, in my view, but I am skeptical Nvidia stock rips higher near term," he added. The earnings report comes amid market worries about an AI spending bubble that could burst and hurt the chip giant's fortunes, AFP reported. Nvidia's H20 sales The quarter saw no H20 sales to China-based customers, following US export restrictions, but Nvidia benefited from a $180 million release of previously reserved H20 inventory, part of $650 million in unrestricted sales to a non-China customer, the press release states. In the outlook section, the company noted that revenue is expected to be $54.0 billion, plus or minus 2%. It has not assumed any H20 shipments to China in the outlook.