Shares of Nvidia (NASDAQ: NVDA) are down 3% in Wednesday’s after-hours trading as of 7:42 p.m. ET, following the artificial intelligence (AI) tech leader’s release of its report for its second quarter of fiscal 2026 (ended July 27, 2025).
The stock’s modest decline can likely be mainly attributable to the uncertainty still surrounding the Chinese data center market. On the earnings call, management said it has received U.S. government licenses to resume selling its H20 data center AI chip to several Chinese customers, and that it has the immediate capacity to sell $3 billion to $5 billion of these chips to China in the third quarter. However, due to geopolitical issues still being “open,” as management put it, it did not assume any H20 sales in its third-quarter guidance.
That said, Q2 revenue and adjusted earnings per share both beat Wall Street’s estimates, as did Q3 guidance for both the top and bottom lines.