Nvidia founder and CEO Jensen Huang on Friday, July 11, 2025, in Nvidia offices in Washington, DC.

Nvidia (NVDA) reported better than expected results in its second-quarter earnings report on Wednesday, Aug. 27, roughly two weeks after the company agreed to pay the U.S. government 15% of the sale of its H20 chips to China.

The company reported $46.7 billion dollars in total revenue, a 56% rise year-over-year, with a corresponding rise in data center revenue. Still, analysts were expecting $41.3 billion in data center revenue and the company reported $41.1.

Nvidia’s stock traded down to roughly $179 per share early on Wednesday, Aug. 27 but by around 4 p.m. ET, its stock rose to about $182, according to Yahoo Finance data. Shares slipped in the after hours, trading around $176 or down around 3% as of 6:30 p.m. ET.

The company previously said it expected to lose $8 billion in the second quarter after President Donald Trump banned the sale of its chips to China in April. Trump later rescinded the ban.

Nvidia said in its earnings release that it sold none of it's chips made for the Chinese customers in the country but it "benefitted" from the release of $180 million in inventory to a customer outside of China.

Nvidia CFO Colette Kress said on the earnings call that the company could ship $2 billion to $5 billion in revenue from the H20 chip in the thrid quarter if "political issues" are resolved.

What were analysts expecting?

Analysts anticipated a 6.2% move for the stock, which could bring the to an all-time high of $192.88, or send it down to $170.66, mimicking its July levels.

The company reported an EPS of $1.05, beating expectations of $1.01, and revenue of $46.7 billion, beating expectations of $46.1 billion.

Additionally, the company announced a $60 billion share buyback program and issued guidance of $54 billion for the next quarter.

The chipmaker’s earnings and sales were expected to jump 53% from a year ago to $45.9 billion, CNBC reported.

Out of the last 12 financial reports, Nvidia has topped estimates 11 times. The stock is currently up 30% year-to-date. In July, Nvidia became the first company to hit a $4 trillion market cap.

Why did Nvidia stock slip?

Analyst Jacob Bourne of Emarketer pointed to the shortnening runway for AI and increased competetition for Nvidia stock slipping in commentarty provided to USA TODAY.

"The data center results, while massive, showed hints that hyperscaler spending could tighten at the margins if near-term returns from AI applications remain difficult to quantify," Bourne wrote.

Thomas Monteiro, senior analyst at Investing.com, said that the stock had been "priced at perfection" in provided commentary.

"Even though the numbers once again came out very solid—particularly driven by another masterclass in datacenter growth and extremely hot demand across the board—the reality is that without the much-needed push from H20 sales in China, Nvidia simply cannot sustain the type of growth priced into its valuation," Monteiro wrote.

This story has been updated.

Michelle Del Rey is a trending news reporter. Reach her at mdelrey@usatoday.com.

This article originally appeared on USA TODAY: What did Nvidia say in its earnings report? Tech giant reports beat, stock slips

Reporting by Michelle Del Rey and James Powel, USA TODAY / USA TODAY

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