NVIDIA(NVDA -0.01%) reported second-quarter fiscal 2026 results for the period ended July 28, 2025, delivering record total revenue of $46.7 billion, a 56% year-over-year increase in data center revenue, and a 98% year-over-year jump in networking revenue to $7.3 billion. Management emphasized rapid adoption of Blackwell and Blackwell Ultra platforms, a robust product cadence, and a path toward $600 billion in annualized AI infrastructure investment for calendar year 2025. The following insights highlight transformative product cycles, platform leadership, and evolving regulatory and commercial risks shaping the long-term investment case.

Blackwell platform accelerates NVIDIA growth

Sequential growth in the GB200 and GB300 platforms was driven by major customers such as OpenAI, Meta, and Mistral deploying the architecture at data center scale. Factory throughput reached approximately 1,000 GB300 racks per week, with production expected to accelerate as additional capacity comes online.

"We began production shipments of GB300 in Q2. Our full stack AI solutions for cloud service providers, Neo Clouds, enterprises, and sovereigns are all contributing to our growth. We are at the beginning of an industrial revolution that will transform every industry. We see $3 to $4 trillion in AI infrastructure spend by the end of the decade."
-- Colette Kress, Executive Vice President and Chief Financial Officer

This rapid manufacturing scale and full-stack AI integration reinforce NVIDIA’s central role in the global AI infrastructure build-out, supporting both near- and long-term demand for its compute and networking technologies.

NVIDIA ecosystem drives competitive advantage

NVIDIA’s platform is adopted across all major cloud providers, edge, and robotics, leveraging a unified CUDA programming model and supporting rapid industry-wide innovation. The company’s approach contrasts with application-specific integrated circuit (ASIC) competitors, which often lack the flexibility and integration required for evolving AI model architectures.

"One of the advantages that we have is that NVIDIA is available in every cloud. We are available from every computer company. We are available from the cloud to on-prem to edge to robotics. On the same programming model. And so it is sensible that every framework in the world supports NVIDIA. When you are building a new model architecture, releasing it on NVIDIA's most sensible. And so the diversity of our platform both in the ability to evolve into any architecture, the fact that we are everywhere, and, also, we accelerate the entire pipeline."
-- Jensen Huang, President and Chief Executive Officer

NVIDIA’s entrenched position in global compute supply chains and its ecosystem-driven approach uniquely position it to outpace single-purpose competitors, supporting durable margins and customer stickiness as AI model complexity and infrastructure scale accelerate over time.

China market presents risk and opportunity

China revenue was a low single-digit percentage of data center sales, and $650 million in H20 was shipped to an unrestricted non-China customer. Management estimated an unrealized China opportunity worth over $50 billion in 2025, growing roughly 50% annually, intensifying the strategic imperative to access this market despite U.S. government export controls.

"The China market, I have estimated to be above $50 billion of opportunity for us this year. If we were able to address it, with competitive products and if it is $50 billion this year, you would expect it to grow say, 50% per year. As the rest of the world's AI market is growing as well. It is the second-largest computing market in the world, and it is also the home of AI researchers. About 50% of the world's AI researchers are in China. The vast majority of the leading open-source models are created in China."
-- Jensen Huang, President and Chief Executive Officer

Ongoing regulatory hurdles present material uncertainty for NVIDIA’s largest unrealized market, with potential approval of next-generation Blackwell or H20 platforms in China representing a significant future revenue driver but also exposing the company to ongoing geopolitical volatility and regulatory risk.

Looking Ahead

Management issued revenue guidance of $54 billion plus or minus 2%, excluding any H20 shipments to China, and forecasts gross margins of 73.3% GAAP and 73.5% non-GAAP, plus or minus 50 basis points. Capital spending among the top four hyperscalers doubled over two years to $600 billion annually, and NVIDIA expects annual operating expenses to grow in the high 30s percentage range year-over-year, reflecting accelerated investment in new platforms and the Rubin ramp-up. No explicit approval or timeline for resumed large-scale China shipments was disclosed, and all forward-looking guidance excludes uncertain China contributions.