Nvidia's Data Center Sales Surge to $41.1 Billion in Q2 FY2026 Amid AI Boom

Santa Clara, CA – Nvidia, a leading designer of graphics processing units (GPUs) and AI chips, reported a significant financial performance for its second quarter of fiscal year 2026, ending July 27, 2025. The company's data center segment recorded a robust $41.1 billion in sales, underscoring its pivotal role in the burgeoning artificial intelligence industry. This figure represents a 56% increase compared to the same period last year, as noted by TechCrunch in a recent tweet, stating, > "Nvidia's relentless development cycle has resulted in enormous profits for the company, which brought in $41.1 billion in data center sales in its most recent quarter."

Nvidia's total revenue for the quarter reached $46.7 billion, marking a 56% year-over-year increase and a 6% sequential growth from the previous quarter. The company also posted a net income of $26.4 billion, a 59% rise from the prior year. This strong financial showing highlights the intense demand for Nvidia's specialized hardware, which is critical for powering advanced AI applications and infrastructure globally.

The impressive growth in data center revenue was primarily fueled by the accelerating adoption of AI technologies, particularly Nvidia's Blackwell chips. CEO Jensen Huang emphasized the transformative nature of AI, stating, "We’re ramping really hard into data centers. This year is obviously a record-breaking year. I expect next year to be a record-breaking year." CFO Colette Kress further added that the company anticipates a $3 trillion to $4 trillion spend on AI infrastructure by the end of the decade.

Despite this robust growth, the company's financial report also revealed that two unnamed customers accounted for 39% of Nvidia's total revenue in the quarter, indicating a degree of customer concentration. Furthermore, the company faced ongoing challenges related to U.S. export restrictions on its H20 chips to China, which resulted in a $4.0 billion reduction in H20 sales and no H20 shipments to China-based customers in Q2.

Looking ahead, Nvidia projects its third-quarter revenue for fiscal year 2026 to reach approximately $54 billion, signaling continued strong demand for its products. The company's board of directors has also approved an additional $60 billion for its share repurchase authorization, demonstrating confidence in its long-term growth prospects and commitment to returning value to shareholders. The broader AI chip market is projected for substantial expansion, with the global AI chip market expected to grow from $29.5 billion in 2023 to $229.6 billion by 2029, and the generative AI chip market alone forecasted to reach $100.8 billion by 2029, underscoring the vast market opportunity Nvidia continues to capitalize on.