Nvidia has reported a 56% jump in quarterly revenue, but warned that uncertainty around its sales to China could weigh on future growth, unsettling investors who fear the artificial intelligence boom may be slowing.
Shares in the $4tn chipmaker fell 2 per cent in pre-market trading on Thursday, after its second-quarter results offered little clarity on AI chip sales to China amid ongoing tensions between Washington and Beijing.
For the quarter to July 28, Nvidia recorded revenue of $46.7bn, slightly ahead of consensus forecasts of $46.5bn. It expects revenue of around $54bn this quarter, plus or minus 2%, compared with Wall Street’s expectation of $53.8bn.
Nvidia’s growth was fueled by the rollout of Blackwell Ultra, Nvidia’s newest high-performance chip, which is seeing “extraordinary demand”. The company’s net income rose 59% yearly to $26.4bn, ahead of forecasts, while adjusted gross margins came in at 72.7%.
Nvidia Chinese Problem
The Trump administration earlier this year blocked exports of the H20, which Nvidia had tailored for China. A subsequent deal allowed sales to resume in exchange for giving the US government 15% of related revenues.
Nvidia said shipments could total $2bn–$5bn this quarter if regulatory details are finalised, though China has also discouraged domestic companies from buying Nvidia’s chips.
Despite these hurdles, Nvidia still sold $650mn worth of H20 chips outside China during the quarter. Overall sales to customers with billing addresses in China fell to $2.8bn, down 50 per cent from the prior quarter and 25 per cent year on year.
