NVIDIA's data center revenue hits $89B. Plus, Anthropic commits $45B to Nscale

Like the finale of a dazzling fireworks display, Nvidia just capped a strong earnings season with an explosive print.

The GPU juggernaut blew out both its own guidance ($91B) and the Street’s consensus expectations($92.2B) for revenue, pulling in $96.2B in revenue for the Q2 FY26 period (+18% QoQ | +106% YoY), with earnings at $2.46/share (+3% QoQ | +128% YoY). NVDA shares surged nearly 5% in after-market trading.

$89B of this revenue came from hardware sales to data centers. And for the first time, NVIDIA broke this out into two segments: hyperscalers ($48.7B), and “AI clouds, industrial, and enterprise” customers ($40.3B).

The latter bucket includes neoclouds, sovereign AI, and other enterprise-grade customers, and the near-split in revenue between this cohort and hyperscalers shows that the Davids of the CAPEX race are holding their own against the Goliaths.

For Q3 guidance, NVIDIA anticipates $108B in revenue (±2%), which explicitly assumes zero revenue from Chinese buyers. Given the escalating regulatory risk around Chinese access to NVIDIA hardware, the company could be hedging its language here: rather than forecast an outcome nobody can predict, they're modeling zero to treat anything above that as upside.

The earnings also confirmed that NVIDIA’s Vera Rubin is in full production, ramping up at facilities for CoreWeave, Google Cloud, Microsoft Azure, Oracle, and Nebius.

CEO Jensen Huang struck a confident tone, stating that "AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” adding that there are now "multiple frontier labs scaling in parallel."

With July’s AI sell-off in the rearview after a stout earnings season for the sector, investors can give a sigh of relief after another beat from the king maker with strong guidance going into Q3.

-CMH

Today we open with investment bank price targets for IREN ahead of tomorrow’s earnings, then Ornn’s Kush Bavaria joins to walk through their new H100 volatility index. To close, we look at the run of senior departures from OpenAI this year, including data-center head Chris Malone, and Moonshot’s reported talks with Microsoft, Amazon, and Google to host Kimi K3.

Anthropic has agreed to spend $45 billion on compute from Nscale’s Monarch campus in West Virginia, Bloomberg reported Wednesday. The six-year commitment covers about 460 MW of power capacity and averages $7.5 billion of spending annually. Nscale will use Nvidia (NASDAQ: NVDA) Vera Rubin chips to serve Anthropic, according to people familiar with the private agreement. Read more.

On Wednesday, JPMorgan analyst Richard Choe kept his Sell rating on IREN (NASDAQ: IREN) and set a $46 price target. The target sits about 9% above the reported previous close of $42.21. The rating remains below the broader view tracked by TipRanks. Read more.

China’s Moonshot AI opened talks with Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN) to host Kimi K3, Reuters reported Wednesday. Alphabet’s Google (NASDAQ: GOOGL) is also in the preliminary discussions. Moonshot is seeking as much as 30% of income from services related to K3 on Azure and Amazon Web Services, with a similar arrangement under discussion for Google Cloud. Read more.

OpenAI head of data centers Chris Malone has left, The Wall Street Journal reported Tuesday. Malone joined OpenAI in March 2025 after holding data-center infrastructure roles at Meta and Google. OpenAI did not name a successor. Read more.

Oklahoma voters rejected State Question 844 on Tuesday, preserving the state’s existing method for reimbursing local governments for property taxes waived under a manufacturing incentive. The Associated Press called the result within an hour of polls closing, according to KOCO. The proposed constitutional amendment would have allowed the Legislature to set reimbursement levels and calculation methods for counties, schools and other local entities. Read more.

Bitcoin miner turned AI factory Bitdeer (NASDAQ: BTDR) mined 1,190 bitcoin in July as self-mining hash rate reached 76.7 EH/s, while long-term offtake commitments covering its 9.5 MW A102 AI Cloud facility in Malaysia represent more than $800 million of expected contracted revenue. July production rose 20% from 990 BTC in June and 322% from 282 BTC in July 2025. Self-mining hash rate climbed from 73 EH/s in June and 22.3 EH/s a year earlier. Read more.

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