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    NVIDIA (NVDA)

    Q2 2026 Earnings Summary

    Reported on Aug 28, 2025 (After Market Close)
    Pre-Earnings Price$181.60Last close (Aug 27, 2025)
    Post-Earnings Price$180.82Open (Aug 28, 2025)
    Price Change
    $-0.78(-0.43%)

    What went well

    • NVDA’s next-generation AI platforms (Blackwell and upcoming Rubin) deliver an order-of-magnitude improvement in performance per watt and performance per dollar, positioning the company to capture substantial market share in the rapidly growing AI infrastructure spend estimated at $3–$4 trillion by decade's end.
    • The company’s comprehensive and innovative networking portfolio—including Spectrum XGS, NVLink 72, and InfiniBand—enhances data center efficiency and scalability, creating a strong competitive moat in powering large-scale AI factories.
    • NVDA is poised to gain from expanding opportunities in key markets such as China, with potential for $2–$5 billion in H20 shipments per quarter, subject to resolution of geopolitical issues, further diversifying its revenue stream.

    Q&A Summary

    1. Global AI Spend
      Q: What is our share of the $3–$4T AI infrastructure spend?
      A: Jensen explained that out of the enormous $3–$4 trillion global AI infrastructure opportunity, NVIDIA currently captures roughly 35% of the gigawatt-scale project value by leveraging its full-stack, energy-efficient design to maximize compute performance.

    2. China Market
      Q: What are the long-term China market prospects?
      A: Jensen noted that the China market is estimated to be a $50 billion opportunity this year, with potential to grow at about 50% annually as AI research and open-source innovations drive demand, pending necessary license approvals.

    3. Revenue Outlook
      Q: Is next year’s data center revenue growth on track?
      A: Jensen conveyed that robust customer forecasts and expanding demand for NVIDIA’s advanced solutions indicate a strong continuation of growth in data center revenue next year, reinforcing the company’s leading market position.

    4. Product Mix
      Q: How is the $7B data center growth apportioned?
      A: Colette clarified that the lion’s share comes from Blackwell, while ongoing sales of Hopper and complementary networking solutions also contribute, reflecting a balanced revenue mix across the segments.

    5. Data Center vs. Networking
      Q: How do data centers and networking compare in growth?
      A: Management emphasized that both are integral to the AI revolution—with Blackwell powering compute growth and integrated networking solutions enhancing efficiency—thus jointly driving NVIDIA’s expansion.

    6. China h20 Shipments
      Q: What conditions drive China h20 shipments this quarter?
      A: Colette explained that geopolitical negotiations and the issuance of additional licenses will determine whether NVIDIA ships between $2 and $5 billion in h20 revenue this quarter, with production capacity ready to scale accordingly.

    7. Rubin Transition
      Q: How does Rubin improve our product capabilities?
      A: Jensen described Rubin as the next generational leap, offering a more mature, fully scaled AI supercomputer platform that builds on NVIDIA’s successful innovations to deliver even greater performance and efficiency.

    8. Spectrum XGS
      Q: What is the scope of the Spectrum XGS opportunity?
      A: Jensen detailed that Spectrum XGS, part of NVIDIA’s cutting-edge networking suite, is designed to effectively link multiple data centers into a super factory, significantly enhancing communication speed and throughput despite being a relatively new initiative.

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