NVIDIA's year-over-year revenue growth decelerated to 122 percent, marking the first significant slowdown from prior triple-digit rates.
Nvidia achieved Q2 2025 revenue of $30.04 billion, representing 122 percent year-over-year growth, though the company's expansion is decelerating. The growth rate trails the 262 percent, 265 percent, and 206 percent year-over-year increases reported in Q1 2025, Q4 2024, and Q3 2024. Quarter-to-quarter growth also slowed to 15 percent compared to 17 percent, 22 percent, and 34 percent in preceding quarters. Nvidia predicted $28 billion revenue for the next quarter, plus or minus two percent.
Datacenter revenue dominated at $26.3 billion, up 16 percent from Q1 and 154 percent year-over-year, with cloud service providers accounting for 45 percent of that figure while more than 50 percent came from consumer internet and enterprise customers. Networking contributed $3.7 billion to the datacenter total, giving Nvidia an annual run rate of over $14 billion and making it the second-biggest datacenter networking vendor — bigger than Arista and Juniper combined.
H200 series accelerators using Hopper architecture are starting to ramp, with major clouds lining up to purchase them. CEO Jensen Huang explained that cloud service providers have virtually no available GPU capacity, "either because they're being deployed internally for accelerating their own workloads" or rented to startups. "If you have a choice between building CPU infrastructure right now for business or Hopper infrastructure for business right now, that decision is relatively clear," Huang said. "I think people are just clamoring to transition the $1 trillion of established installed infrastructure to a modern infrastructure and Hopper's state-of-the-art." Nvidia has also shipped samples of its forthcoming Blackwell product range and predicted it will bring additional billions to the balance sheet this year.
Despite US bans on sales of advanced technology to China, Nvidia's China datacenter revenue "grew sequentially in the second quarter of fiscal year 2025 and is a significant contributor to our datacenter revenue," though a smaller contributor than before sanctions were imposed. A remarkable revenue spike occurred in Singapore, which accounted for $5.6 billion, up from $1 billion the previous quarter. Nvidia noted that "most shipments associated with Singapore revenue were to locations other than Singapore and shipments to Singapore were insignificant." China's new energy regulations setting standards for compute performance per watt and memory bandwidth could potentially prevent Nvidia from creating products allowed in the market.
Huang predicted $32.5 billion revenue for the next quarter, representing year-over-year growth of 79.5 percent. Investors responded negatively to the earnings report, with Nvidia's shares dropping from around $126 to the $116 range in after-hours trading.