Nvidia revenue surges 56%, despite zero H20 processor sales to China

Computer chip manufacturer Nvidia reported its financial results for the second quarter of its 2026's fiscal year, beating Wall Street expectations for revenues and earnings per share (EPS).

Nvidia reported Q2 revenue of $46.7 billion, a 6% rise over the previous quarter, and over $26.4 billion in net income. The company’s revenue was up by 56% from the previous year, according to Wednesday’s announcement.

The company disclosed EPS of $1.08, using GAAP accounting, and $1.05 EPS for non-GAAP. Nvidia also posted a profit margin of around 72.4% for the quarter.

Shares of Nvidia sank by about 3.3% in after-hours trading Wednesday.

Nvidia is the world’s largest publicly traded company, with a market capitalization of over $4.4 trillion at this writing. The company is the leading manufacturer of artificial intelligence and computing chips, and has also grown to have geo-strategic importance for the US government.

Nvidia reports zero H20 sales to China

Nvidia addressed concerns over its China business in its latest earnings report, saying sales of its H20 processor had not reached the country. “There were no H20 sales to China-based customers in the second quarter,” the company said.

The H20 processor is a weaker version of Nvidia’s H100 chip designed for the Chinese market in compliance with existing US regulations around the export of high-performance computer chips used in AI applications.

In January, US President Donald Trump’s administration announced it was seeking to tighten export controls on Nvidia H20 sales to China due to “national security” concerns.

The Trump administration followed through and imposed strict export controls, which included export licenses and fees totaling about $5.5 billion, bringing H20 chips bound for China to a screeching halt. 

However, the administration reversed its stance in August, allowing H20 chip sales to China to resume on the condition that Nvidia gives the US government 15% of the revenue from the chips sold to the China.