Nvidia’s Q2 2026 earnings report reveals a record revenue of $46.7 billion, driven primarily by its Data Center segment, which now constitutes 88% of total revenue. However, the company faces significant risks, including geopolitical tensions, particularly in China, and rising competition from domestic firms and in-house silicon initiatives by hyperscalers. Despite heavy investments in R&D and diversification into AI software and robotics, Nvidia’s reliance on a few major clients and potential market saturation raise concerns about its long-term sustainability. While Nvidia is currently a leader in the AI sector, it must navigate these challenges to maintain its growth trajectory.