Nvidia delivered record-breaking revenues of $46.7 billion in its fiscal Q2 2026, up 56% year-on-year with a gross margin above 72%. While the data centre segment drove the lion’s share of growth and AI demand remains strong, the stock fell 2.4% in after-hours trading. Why did the market react this way to such bullish figures? In this guide, we break down Nvidia’s fundamentals, the reason for the share price drop, and what it could mean for investors looking to capitalise on the next big AI wave.
Results that shook the market
Nvidia once again wowed Wall Street with financial results that blew past expectations. For the second fiscal quarter of 2026, revenue soared to $46.7 billion—a 56% year-over-year jump and a 6% rise from the previous quarter. The standout driver? Data centres, which alone brought in over $41 billion in revenue.
Blackwell and the future of computing
The Blackwell platform is now in production, and according to CEO Jensen Huang, demand is nothing short of “extraordinary.” This next-gen architecture accelerates critical AI workloads, scientific simulations, and advanced visualisation—cementing Nvidia’s position at the heart of modern computing infrastructure.
Total revenue: $46.7 billion.
Gross margin: over 72%—among the highest in the chip sector.
Data centre segment: over $41 billion in revenue.
$24.3 billion returned to shareholders via buybacks and dividends.
New $60 billion buyback programme approved.
In short, Nvidia just got stronger. The company’s fundamentals are becoming harder to ignore—even for the most cautious AI sceptics.
Why the stock fell
Despite delivering stellar results, Nvidia shares dipped 2.4% after hours. So what gives? Investors saw the slower sequential growth—just 6% from the prior quarter—as a potential sign of cooling momentum. That, coupled with a rally of over 30% so far in 2025, triggered some profit-taking.
Expectations reset, not fundamentals
The computing segment dipped 1%, but gains in networking helped offset that decline. This isn’t a structural flaw—it’s more of a natural breather after a roaring run-up.
Quarter-on-quarter growth slowed to 6%.
Computing revenues dipped by 1%.
Investors took profits following a stellar YTD rally.
Sky-high expectations left little room for “merely great” news.
This isn’t the market losing faith in Nvidia. It’s a textbook example of how valuations get recalibrated in high-growth tech—especially when expectations are priced for perfection.
What it means for investors
If you’re eyeing Nvidia for your portfolio, this moment might prove pivotal. Corrections in high-quality companies often signal opportunity—not weakness. Particularly in sectors undergoing structural transformation, like AI, timing your entry can make all the difference.
How to think like a long-term investor
Check the fundamentals: margins, cash flow, and tech leadership still shine.
Assess the timing: look for tactical entry points after moderate pullbacks.
Diversify wisely: balance AI exposure with other resilient sectors.
Think long term: Nvidia is shaping the digital infrastructure of the future.
Get advice: match your risk profile with the right allocation strategy.
Investing in Nvidia isn’t just a bet on one company—it’s a long-term wager on the generational shift AI represents. But to win that bet, you’ll need discipline, homework, and a portfolio plan built for the next decade—not just the next quarter.
