NVIDIA Beats Q2, Lifts Guidance, Yet Margin Concerns Push Shares Down

NVIDIA topped Q2 estimates with revenue of $96.2B and adjusted EPS of $2.22, as data-center sales jumped about 117% to roughly $89B; it issued a Q3 revenue guide of about $108B above expectations (assuming no China revenue). CEO Jensen Huang said AI compute demand is at an inflection point, but gross margins are expected to shrink to 71–72% by Q4 due to memory costs, leading to a weak after-hours move despite the strong results.