Nvidia's revenue more than doubled in the second quarter. Why aren't investors impressed?

Nvidia's revenue in the second quarter surged 206% year-over-year to $96.22 billion, exceeding analysts' expectations of $92.17 billion, according to CNBC . Adjusted earnings per share also came in higher than market estimates: $2.22 versus $2.10.

Nvidia stated that revenue for the current quarter is expected to reach $105.84–110.16 billion, while analysts’ average forecast was around $105 billion. However, the most optimistic estimates reached as high as $138.7 billion, according to Bloomberg.

The adjusted gross margin in the second quarter was 75%, in line with expectations. However, the forecast for the third quarter is weaker: 74% plus or minus 0.5 percentage points, while the consensus had projected a margin of 74.8%. This is unlikely to ease concerns about rising component costs, especially given that the company is raising prices for many of its customers, Bloomberg reports.

The company's results send a signal to the market about the state of the global stock market, whose growth is largely driven by the AI boom, CNBC noted ahead of the earnings release. “Nvidia is, in essence, the leading indicator of the state of the AI market,” Fu Li, an analyst at Benchmark StoneX, told the network.

Following the announcement, the chipmaker's shares fell by about 1.6% in after-hours trading.

Over the past year, Nvidia’s results have exceeded expectations in every instance except for the second quarter of last year, when the figures were exactly in line with the forecast. Nevertheless, investors “punished” the company every time with a sell-off during the next trading session following the release of its earnings report, according to data from Bespoke, as reported by CNBC.

Business Insider notes that Nvidia's stock has been looking much more "mortal" of late. After several years of almost “otherworldly” dominance, the company’s 14% gain since the start of 2026 is just two percentage points ahead of the S&P 500, the publication writes. And since mid-May, Nvidia’s stock has fallen 19% amid a widespread sell-off of chipmakers. Investors have begun to question whether demand for and spending on AI can continue to justify the high valuations of companies in the sector, BI explains.

Nevertheless, Wall Street remains extremely optimistic about Nvidia. Seventy-nine out of 82 analysts recommended buying the company's stock ahead of the earnings report.

This news story is being updated.

This article was AI-translated and verified by a human editor