Nvidia posts robust growth despite uncertain China outlook

NVIDIA reported another quarter of strong growth on Wednesday in the face of market tensions on demand for artificial intelligence and how its business in China will transfer geopolitical tensions between Washington and Beijing.

The flourishing sales of AI Nvidia potatoes helped achieve success in its business in China, and pushed them to become the most valuable group in the world through the market value.

CEO Sensen Huang expected his spending on the infrastructure of Amnesty International will only increase in the coming years, as some investors wonder whether the pace of investment in chips and databases are sustainable.

The 46.7 billion dollars technology giants said for a quarter to 28 July, an increase of 56 percent on an annual basis and more than 46.5 billion dollars, according to VISIBLE Alpha.

NVIDIA has said it expects sales of $ 54 billion for the current quarter, in addition to or minus 2 percent, better than expectations of $ 53.8 billion.

Despite the strong results, its shares decreased by 3 percent in the hours after working hours as the report left uncertainty about the sales of artificial intelligence chips in NVIDIA in China without solution.

The Trump administration earlier this year prevented the exports of the H20 chip, which designed NVIDIA for the Chinese market. NVIDIA then reduced a deal to allow sales to appeal in exchange for granting the US government 15 percent of revenues.

But it is still unclear how quickly these sales recover.

The fact that NVIDIA did not include artificial intelligence chips from China in its financial directives means the expectations of some investor expectations.

“54 billion dollars does not include H20 – and it was shocked because they did not.” He added that many of Wall Street’s revenues were taken into consideration about $ 2 billion in additional revenues for the current quarter after the export restrictions were raised.

NVIDIA Chris Chris Finance Director told analysts on Wednesday that the company is still awaiting the United States government to publish the “regulation” of the deal that it concluded earlier this month.

If these problems are solved, NVIDIA can ship between $ 2 billion and $ 5 billion from H20 chips to China during the current quarter, as Kress says, with a “chosen number” of Chinese clients who have received licenses in recent weeks.

The White House did not immediately respond to a request for comment.

NVIDIA warned in offering profits that its agreement with the Trump administration could “be subject to us, increase our costs and harm our competitive position.” The AMD competitor has made a similar deal.

Beijing pushed back against Chinese companies using NVIDIA chips, adding doubts about the amount of their sale this year as broader trade negotiations between Washington and Beijing.

NVIDIA said that although there were no H20 revenues in China during the quarter due to the regulations for exporting the new United States, it managed to sell $ 650 million from chips to a customer outside the country.

Other revenues of customers who are located in China, which include sales of their gaming chips, have decreased by 50 percent of the previous quarter and decreased by 25 percent on an annual basis, to $ 2.8 billion.

NVIDIA has increased by 35 percent this year as near Wednesday, which helped pay gains in the wider market. But stocks were sensitive to any negative news.

They achieved great success last week during a large -scale sale in AI’s companies, after a negative report on the applications and practical comments of the technology carried out by the CEO of Openai Sam Altman about its testing.

The growth of NVIDIA slowed for astronomical characters that I reported at the beginning of the artificial intelligence boom two years ago.

Its future horizons depend on large technology groups such as Google and Amazon continues their massive spending on artificial intelligence devices, along with smaller cloud companies and governments.

Huang told analysts that the spending spray would continue. “The artificial intelligence race is now working,” he said, adding that only four of the technology companies “Hyperscale” have multiplied “CAPEX spending … to $ 600 billion annually.”

The company’s next generation chip – known as “Vera Rubin” – is on the right path to shipping next year. “Amnesty International factories are more than ever … we will build millions and millions of GPU Rubin platforms.”

He expected that more growth would come when other countries begin to catch up with the United States, which represents about 60 percent of the world’s computing power.

The revenue of the global data center, which relates to the work of artificial intelligence chips in NVIDIA, amounted to $ 41.1 billion, at an estimate of a consensus of $ 41.4 billion. Slip is compensated by the best revenues than expected from the gaming sector.

The net NVIDIA has jumped 59 percent from last year to $ 26.4 billion, compared to $ 23.5 billion. The share profits of $ 1.08, while the total numbered margin was 72.7 percent, slightly higher than the consensus estimates of 72.3 percent.

The NVIDIA Board of Directors also authorized $ 60 billion of shares to purchases, an increase of $ 50 billion, which it announced during the same quarter of last year.

Huang said that Blackwell Ultra, which is the latest generation of devices that use the most advanced Blackwele chips, was “fell at full speed, and unusual demand.”

Blackwell has struck early technical holidays of its development due to the most complex infrastructure required to operate excessive shelves of interconnected chips.

NVIDIA works on a new slide based on Blackweell in the China market, which is stronger than the H20 but is still unable as its most advanced American chips. Trump indicated that he was open to a similar revenue deal.