Nvidia once again demonstrated why it is the dominant player in artificial intelligence (AI) when it reported its Q2 results.
Nvidia (NVDA -3.38%) continued its breakneck growth in its second quarter (ended July 27), as demand for its graphics processing units (GPUs) remains voracious. The strong growth came despite the company not selling any chips to Chinese-based customers during the quarter.
While Nvidia’s stock did not make a big move on its earnings announcement, it is up about 35% on the year, as of this writing, and up more than 1,300% over the past five years.
Let’s take a closer look at Nvidia’s results and prospects to see whether investors can continue to pile into the stock.

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Robust growth despite China headwinds
Nvidia’s quarter once again demonstrated that the artificial intelligence (AI) infrastructure build-out continues to march along. The company’s revenue surged 56% to $46.74 billion, topping analyst estimates for sales of $46.06 billion, as compiled by LSEG. Adjusted EPS, meanwhile, increased 52% to $1.05, topping the $1.01 consensus.
What makes the growth even more impressive is that Nvidia missed out on around $8 billion in revenue from China if it had been allowed to continue to sell its H20 chip in the country. Instead, the company took a $4.5 billion inventory write-down. It estimates that the Chinese market is a $50 billion opportunity that is growing 50% a year.
Nvidia is expecting to be able to obtain an export license from the U.S. government to begin selling the chip to Chinese customers once again, but it did not include any Chinese sales in its guidance. The U.S. government is looking to take 15% of the revenue generated from any H20 sales to Chinese customers, although it has not yet enacted this measure. Meanwhile, Nvidia continues to push to be allowed to sell its newest Blackwell chips to China, not just the “dumbed-down” H20 chips.
Data center revenue once again was the biggest contributor for Nvidia, with revenue climbing 56% to $41.1 billion. Incredibly, that’s up from just $10.3 billion two years ago. Nvidia’s GPUs continue to be its main product, and its newest Blackwell chips accounted for tens of billions of revenue.
However, within the data center segment, its networking portfolio also shone. Data center networking equipment revenue nearly doubled to $7.3 billion due to strong demand for its Spectrum-X Ethernet, InfiniBand, and NVLink products.
With AI inference eventually expected to overtake the market for training large language models (LLMs), Nvidia highlighted its strength in this area, saying Blackwell set the benchmark for inference performance. It also highlighted how agentic AI needs much more computing power than generative AI for both training and inference. As a result, it sees AI infrastructure growing to be a $3 billion to $4 trillion opportunity in the next five years.
Nvidia’s other segments were also strong. Gaming revenue soared 49% to $4.3 billion, while its professional visualization segment saw sales climb 32%. Meanwhile, its burgeoning automotive segment saw revenue surge 69% to $586 million. The company credited its strong auto performance to self-driving solutions, while saying its new Drive AV software platform will give it billions of dollars in new revenue opportunities.
The company also continues to generate a prolific amount of cash, with operating cash flow of $15.4 billion and free cash flow of $13.5 billion in the quarter. It ended the quarter with net cash and marketable securities of $56.8 billion and $8.5 billion in debt.
Looking ahead, Nvidia forecast Q3 revenue to come in around $54 billion. While no Chinese sales were included in the guidance, the company said it could ship between $2 billion and $5 billion worth of H20 chips in the quarter if the market opens up.
Is Nvidia stock still a buy?
Nvidia’s growth continues to be eye-popping for a company of its size. While China was a big headwind in the quarter, it barely slowed down its momentum. Meanwhile, there is the possibility that this huge market could open up later this year.
AI infrastructure spending continues to soar, and given the announced capital expenditure (capex) budgets from the major cloud computing providers and other AI companies, there appear to be no signs of this spending slowing down. With Nvidia predicting the data center market growing to between $3 trillion to $4 trillion in the next five years, there is still a massive opportunity for the company moving forward.
Meanwhile, the strength of Nvidia’s networking portfolio doesn’t get nearly the press it deserves, as it’s growing rapidly and is another one of the company’s big advantages, in addition to its CUDA software platform.
The stock still looks attractively valued, trading at a forward price-to-earnings (P/E) ratio of 29.5 times 2026 analyst estimates, and a PEG (price/earnings-to-growth) ratio of less than 0.8, with PEGs below 1 considered undervalued.
With AI infrastructure spending still growing strongly and the company’s wide moat, Nvidia is still a stock to buy at current levels.