NVIDIA's stock price suffered a steep decline of over 5% in after-hours trading, as the company's data center business reported slightly lower revenue than anticipated for the second consecutive quarter. This segment, which revolves around GPUs and associated products, is a key driver of NVIDIA's growth. Despite a year-over-year revenue increase of 56% to $41.1 billion in Q2, the figure fell marginally short of market expectations, which stood at $41.34 billion.

NVIDIA disclosed that it did not sell any H20 chips to China during the second quarter but did release $180 million worth of inventory to overseas customers. This move resulted in a significant reduction of $4 billion in H20 sales. The company's Chief Financial Officer estimated that, subject to favorable geopolitical conditions, H20 chip shipment revenue could range between $2 billion and $5 billion in the third quarter.