Shares of Nvidia Corporation (NASDAQ:NVDA) fell 2.01% during the pre-market trading session on Thursday after the company logged no revenue from H20 chip sales in China.
Nvidia Posts $46.7 Billion Q2 Revenue, Beats Estimates, Ups Buyback
Nvidia’s Q2 revenue hit $46.74 billion, marking a 56% year-over-year increase. This narrowly exceeded the Street’s consensus estimate of $46.02 billion. The company also reported an adjusted earnings per share of $1.05, surpassing the Street’s forecast of $1.01. The non-GAAP gross margins for the quarter were 72.7%.
Nvidia’s Blackwell Data Center revenue experienced a 17% increase quarter-over-quarter. CEO Jensen Huang highlighted the company’s AI platform, Blackwell, as a significant leap forward. He stated, “The AI race is on, and Blackwell is the platform at its center.”
Alongside the earnings, Nvidia announced a new $60 billion share buyback authorization, with $14.7 billion still available from an existing repurchase agreement.
Uncertainty Over H20 Chip Shipments To China
The company reported zero H20 sales to customers in China during the second quarter. Nvidia reported a $180 million boost from the release of H20 inventory, which was sold to a customer outside China.
Nvidia stated that its current quarter forecast does not factor in the H20, but estimated that between $2 billion and $5 billion worth of H20 chips could be shipped to China if "geopolitical" challenges were resolved.
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Dan Ives: Nvidia poised for $5 Trillion Despite China risks
Dan Ives reportedIves says that any decline in the stock should be seen as a “buying opportunity” calling the Jensen Huang led company as “the only game in town.” The analyst also foresees Nvidia to hit “$5 trillion” in market cap by early 2026.
Huang Calls AI A New Industrial Revolution
During the earnings call, Huang portrayed AI as “a new industrial revolution,” underlining its transformative effect on the global economy.
Furthermore, Huang defended Nvidia’s dominant AI GPU platform against rivals Broadcom Inc. (NASDAQ:AVGO) and Marvell Technology Inc. (NASDAQ:MRVL) who are increasing custom AI chip production. Huang dismissed concerns about Nvidia’s position being threatened, citing its full-stack architecture, ecosystem reach, and performance-per-watt leadership as irreplaceable assets.
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