TradingKey - The highly anticipated NVIDIA (NVDA.US) Q2 fiscal report for FY2026 has been released: revenue of $46.74 billion and net profit of $26.42 billion, both showing an annual growth rate exceeding 55%, and both surpassing expectations. However, its stock price fell more than 5% in after-hours trading, closing down 3%. The market reaction seems contradictory, but it actually stems from a reassessment of growth sustainability.
Despite the overall impressive results, revenue from the core data center business has slightly missed expectations for two consecutive quarters, with a quarter-on-quarter growth of only 6%, marking the first single-digit growth since the AI boom. This has been interpreted by some analysts as a signal of &#34;growth peaking.&#34; Taufiq Rahim, Chief of 2040 Advisory, pointed out that the sequential decline in data center computing business exposes the challenges of maintaining ultra-high growth rates. Brian Mulberry from Zacks Investment Management believes that a growth rate of 50%-55% is far below last year's level of over 100%, leading to weakened stock momentum.
However, more institutions believe the pullback is an &#34;overreaction.&#34; David Wagner from Aptus Capital emphasized that the company still recorded over 50% year-on-year growth outside the constrained Chinese market, and the guidance of a 73.5% gross margin indicates strong profitability, presenting a good opportunity to &#34;buy on the dip.&#34; Thomas Martin from Globalt Investments and Matt Orton from Raymond James both believe that the continued massive capital expenditures by large-scale enterprises prove that AI is still in its early stages, with demand being &#34;very, very strong.&#34;
PitchBook analyst Dimitri Zabelin pointed out that NVIDIA is diversifying its customer base by expanding sovereign buyers. Overall, this financial report is not a warning of slowing growth, but rather a rational calibration of market expectations for NVIDIA's growth. The consensus on Wall Street is that the development of AI is far from over, and NVIDIA's fundamentals remain strong, with short-term volatility unable to mask long-term trends.
Additionally, it should be noted that U.S. Treasury Secretary Janet Yellen confirmed on Wednesday local time that after finalizing a deal with Intel last week, the U.S. government may consider acquiring equity in other industries, but NVIDIA is not under consideration

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NVIDIA's Q2 fiscal report for 2026 shows revenue of $46.74 billion and net profit of $26.42 billion, both exceeding expectations, with a year-on-year growth rate of over 55%. Despite this, the stock price fell more than 5% in after-hours trading due to market concerns about the sustainability of growth in its core data center business. Analysts pointed out that while the overall performance is impressive, core business revenue slightly missed expectations, with only a 6% quarter-on-quarter increase. Some institutions believe that the stock price correction is an overreaction, as NVIDIA's fundamentals remain strong and AI demand continues to be robust

- NVIDIA (NVDA.US) reported Q2 FY2026 earnings with revenue of $46.74 billion and net income of $26.42 billion, both exceeding expectations and showing over 55% year-on-year growth.  
- Despite the strong results, the stock price fell over 5% in after-hours trading due to concerns about the sustainability of growth, particularly as data center revenue slightly missed expectations for two consecutive quarters.  
- Analysts remain divided, with some viewing the stock's decline as an overreaction, while others highlight ongoing strong demand for AI and robust profitability, suggesting that the market is recalibrating its growth expectations rather than signaling a slowdown.

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NVIDIA's revenue and net profit both exceeded expectations, but it fell over 5% in after-hours trading! What is the market worried about?