NVDA's Q2 earnings report is incredibly strong. The demand for AI computing power hasn’t cooled down—in fact, it’s accelerating again. The only concern is that rising memory prices might squeeze future profit margins. Q2 revenue: $96.2 billion, beating market expectations of around $92.3 billion; up 106% year-over-year and 18% quarter-over-quarter. Data center revenue: $89 billion, up 117% year-over-year, accounting for over 90% of total revenue. Adjusted EPS: $2.22, higher than the expected $2.09. Gross margin remains at 75%, showing the company is still highly profitable. The most critical part is the guidance for next quarter: projected revenue of $108 billion, significantly higher than the market expectation of $104.6 billion—and this doesn’t even include revenue from Chinese data centers. In other words, even without China, business is booming. Official NVIDIA earnings report⁠ The real highlight: customers aren’t just the big players like Microsoft, Meta, and Google. Revenue growth from AI cloud, sovereign AI, enterprises, and startups is even faster, indicating that demand is spreading rather than being propped up by a few major clients. Rubin is already in full production, and AWS plans to deploy an additional 2 million GPUs. There are three main concerns: 1. Memory prices like HBM are skyrocketing. NVIDIA expects next quarter’s gross margin to drop slightly from 75% to around 74%, with potential further pressure down the line. 2. To secure memory and supply chain capacity, purchase commitments have surged from $119 billion to $279 billion, showing strong demand but also increasing risk exposure. 3. The market is still worried about “circular financing”—NVIDIA investing in or helping customers with financing, who then use the funds to buy NVIDIA GPUs. Key points from the earnings call⁠