{"id":115825,"date":"2025-08-28T08:30:09","date_gmt":"2025-08-28T08:30:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/115825\/"},"modified":"2025-08-28T08:30:09","modified_gmt":"2025-08-28T08:30:09","slug":"nvidia-earnings-beat-wall-streets-sky-high-expectations-but-the-stock-is-falling-because-there-were-no-h20-sales-to-china-based-customers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/115825\/","title":{"rendered":"Nvidia earnings beat Wall Street\u2019s sky-high expectations, but the stock is falling because \u2018there were no H20 sales to China-based customers\u2019"},"content":{"rendered":"

Nvidia<\/a> recorded no China sales revenue for H20 chips and reported revenue that narrowly beat Wall Street targets in the second quarter, as the AI chipmaker reported financial results<\/a> on Wednesday. <\/p>\n

The results, while confirming that demand for AI infrastructure remains solid, left investors underwhelmed and shares of Nvidia, the world\u2019s most valuable company, declined 4% to around the $175 mark in extended trading Wednesday evening.<\/p>\n

\u201c[The stock movements are] probably just an initial reaction to a so-so number,\u201d Scott Bickley, an advisory fellow at Info-Tech Research Group, told Fortune before the earnings call. \u201cWhich is kind of insane that we\u2019re viewing $46.7 billion in a quarter as \u2018so-so,\u2019\u201d he said.<\/p>\n

Nvidia\u2019s revenue increased 56% from the same period a year ago to $46.74 billion, exceeding Wall Street\u2019s projection of $46.52 billion, per data compiled by Visible Alpha. Profits came in at $26.4 billion, a 40.8% increase from $18.78 billion last quarter. Nvidia posted diluted earnings per share at $1.08, beating projections of $1.02 for the second quarter. Nvidia\u2019s gross margins grew to 72.4%, up significantly from 61% last quarter.<\/p>\n

Nvidia has been navigating trade restrictions<\/a> on H20 shipments to China since April. The U.S. government began issuing licenses for approved buyers in China in July, and Nvidia said a few of its China-based customers had received such licenses. But no H20 chip revenue to China was included in its second-quarter revenue, Nvidia said (It noted that some H20 chip inventory was sold outside of China in the second quarter, adding a $180 million benefit to the topline).<\/p>\n

While the Trump administration announced plans earlier this month<\/a> to allow Nvidia and AMD, a rival chipmaker, to sell certain AI chips to approved Chinese buyers while giving the U.S. government a 15% cut of the proceeds, Nvidia said nothing concrete has yet come of it. <\/p>\n

\u201cTo date the USG has not publicized a regulation codifying such requirement,\u201d CFO Colette Kress said on the company\u2019s earnings call. <\/p>\n

Nvidia said it was not including H20 in its financial forecast for the current quarter, though it estimated that $2 billion to $5 billion worth of H20 chips could be shipped to China if \u201cgeopolitical\u201d issues were resolved. The company also repeated its call for the U.S. government to allow it to sell its more advanced \u201cBlackwell\u201d generation of products to China.<\/p>\n

\u201cProduction of Blackwell Ultra is ramping at full speed, and demand is extraordinary,\u201d CEO Jensen Huang<\/a> said of the tech behemoth\u2019s next-generation AI chip, which is used in data centers globally, in the earnings release. \u201cThe AI race is on, and Blackwell is the platform at its center.\u201d<\/p>\n

Nvidia\u2019s datacenter revenue, which accounts for the bulk of its business, grew 56% year-over-year, and 5% sequentially, to $41.1 billion. The company\u2019s automotive and robotics segment grew the most at 69% year over year.\u00a0<\/p>\n

\u201cExpectations were sky-high, but Nvidia exceeded them again,\u201d Michael Smith, senior portfolio manager and head of the growth equity team at Allspring Global Investments, told Fortune. Allspring owns Nvidia in some of its funds. \u201cMargins are rising as Blackwell ramps; China remains a massive untapped opportunity post\u2013export controls; and a $60 billion buyback is an extra sweetener amid record free cash flow.\u201d\n<\/p>\n

Introducing the 2025 Fortune Global 500, the definitive ranking of the biggest companies in the world. Explore this year’s list.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia recorded no China sales revenue for H20 chips and reported revenue that narrowly beat Wall Street targets…\n","protected":false},"author":2,"featured_media":115826,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[181,28,144,32847,8084,6066,4321,6215],"class_list":{"0":"post-115825","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-artificial-intelligence","9":"tag-business","10":"tag-china","11":"tag-chips","12":"tag-earnings","13":"tag-fortune-500","14":"tag-nvidia","15":"tag-semiconductors"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/115825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=115825"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/115825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/115826"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=115825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=115825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=115825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}