What happens when sky-high expectations start to outpace AI reality? Nvidia once again delivered blockbuster numbers: Q2 revenue soared 56% year-over-year to $46.7 billion, and its data center business posted $41.1 billion in sales.
But Wall Street’s reaction? Less celebratory. Shares slipped over 3% after the company narrowly missed sky-high analyst expectations on data center growth. The “AI king” holds its crown, but any whiff of slower growth—even on blowout quarters—gives nervous investors a reason to fidget.
What's behind the volatility?
- No data center sales to China this quarter, and ongoing uncertainty about future China shipments due to US export restrictions and new tariffs
- Trump’s threat of a 100% tariff on semiconductors—with some exemptions for Nvidia—clouds the long-term AI supply chain
- Growth in traditional gaming and professional visualization outpaced expectations, but the market’s focus remains squarely on AI infrastructure
Bottom line: The AI buildout is still early, profits are massive—and yet, investors demand perfection. For now, it’s full steam ahead but with eyes glued to every quarterly wobble and policy headline.
