NVIDIA Corp (NASDAQ:NVDA) stock fell 0.92% (As on August 28, 11:15:25 AM UTC-4, Source: Google Finance) after the company reported results for the second quarter of fiscal 2026 turning out to be better than what the street had anticipated. The stock declined in extended trading is the fact that its data centre business, now its largest source of revenue, missed expectations for the second quarter in a row. Nvidia’s data centre business revenue stood at $41.1 billion, short of the average $41.3 billion estimates. The results showed hints that spending by giant data center operators “could tighten at the margins if near-term returns from AI applications remain difficult to quantify”. Uncertainties over China continue to persist. The company noted that the US government has not yet crystalised its plan to take a 15% revenue from its AI chip sales to China, and neither has it factored in that impact in its guidance. Depending on the license, Nvidia is expected to sell H20 chips between $2 billion and $5 billion to China. NVIDIA’s Blackwell Data Center revenue grew 17% sequentially. There were no H20 sales to China-based customers in the second quarter.

Further, aside from Nvidia’s struggles in China, the biggest impediment to growth has been the availability of supply. Like most chipmakers, Nvidia doesn’t own factories and relies on outsourced production, chiefly from Taiwan Semiconductor Manufacturing Co. Ramping up production of new technology remains an ongoing challenge.

NVDA in the second quarter of FY26 has reported the adjusted earnings per share of $1.05, beating the analysts’ estimates for the adjusted earnings per share of $1.01. The company had reported the adjusted revenue growth of 56 percent to $46.74 billion in the second quarter of FY26, beating the analysts’ estimates for revenue of $46.06 billion.

Additionally, the company will pay its next quarterly cash dividend of $0.01 per share on October 2, 2025. As of the end of the second quarter, the company had $14.7 billion remaining under its share repurchase authorization. On August 26, 2025, the company has approved an additional $60.0 billion to the Company’s share repurchase authorization, without expiration.

For the third quarter, Nvidia expects revenue to be $54 billion, plus or minus 2%. However, that figure does not factor in any H20 shipments to China, which have been a bone of contention for the company. Despite this, the figure is better than the $53.1 billion projection that analysts were working with. Some analysts had even projected figures in excess of $60 billion.