Nvidia reported fiscal Q2 results that exceeded Wall Street expectations, with revenue of $96.2 billion and earnings per share of $2.22, and projected $108 billion in revenue for Q3, above analysts' forecasts of $103.9 billion. The company's data center segment generated $89 billion, surpassing the $85.4 billion estimate, while gross margin guidance for the next quarter was lowered to 74% from 75% in Q2, a change that contributed to a modest after‑hours decline in the stock. Analyst Thomas Monteiro of Investing.com noted rising memory, financing and infrastructure costs are pressuring margins, and that the sequential margin decline may limit the ability to pass costs to customers amid higher borrowing costs for technology firms. CEO Jensen Huang said during the earnings call that Nvidia is working with memory suppliers and securing capacity for power, land and data‑center infrastructure to meet excess demand, and that a price increase scheduled for the first quarter could help offset higher expenses. The long‑term AI opportunity remains strong, but the pace of margin expansion and cash flow generation will determine how much of the projected growth translates into sustained profitability.