Nvidia set to report Q2 earnings as AI boom drives growth

Nvidia will report its Q2 earnings on August 27, 2025, marking two years since the generative AI boom transformed its business and fueled rapid growth.

The company’s revenue has more than tripled and profits have quadrupled since late 2022, as demand for AI chips surged after the launch of OpenAI’s ChatGPT.

Nvidia’s market cap recently crossed US$4 trillion, and its stock has risen 12x since 2022, closing at US$177.99 on August 22, 2025.

Growth is now slowing, with analysts expecting Q2 revenue to rise 53% year-on-year to US$45.9 billion, according to LSEG estimates.

Data center sales made up 88% of Nvidia’s Q1 revenue, reflecting the company’s shift away from gaming chips.

Analysts say about half of global AI infrastructure spending benefits Nvidia, but the company is exposed to shifts from large cloud providers and changing regulations.

Nvidia’s latest Blackwell chip line accounted for about 70% of data center revenue last quarter.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ NVIDIA’s transformation from gaming to AI shows how quickly tech business models can shift

NVIDIA’s current dominance reflects a dramatic business transformation that happened remarkably fast.

When the company was founded in 1993, it focused on 3D graphics for gaming and multimedia2. As recently as 2018, gaming still constituted about 55% of NVIDIA’s overall revenue, generating between $3.77 billion to $5.29 billion annually3.

But today’s earnings report will show a completely different company. Data center revenue now accounts for 88% of NVIDIA’s total sales1. This represents one of the most significant sector pivots in tech history, happening in just a few years.

The shift demonstrates how established revenue streams can become secondary when new technology waves emerge. Companies with seemingly stable, diversified business models can find themselves redefined by a single breakthrough application—in NVIDIA’s case, the AI boom that began around 2022.

This transformation highlights the importance of having underlying technology platforms that can serve multiple markets, rather than being locked into single-use applications.